Wall Street stock markets have breached new records following the election of President-elect Donald Trump. The rising stocks have been attributed to the business mogul's promise of deregulation and fiscal stimulus.
On Nov. 21, all of the prestigious stock indexes hit new records. The Dow Jones rose by 0.5 percent, the Standard & Poor's 500 rose by 0.7 percent, the Nasdaq climbed by 0.9 percent. All three indexes hit new all-time highs, The Associated Press reports.
It was the first simultaneous record high for all three indexes since Dec. 31, 1999.
The surge has been largely attributed to to the 4 percent increase in crude oil prices but also to the election of Trump. Strategist Andreas Bruckner of Deutsche Bank predicted a Trump administration would result in money fleeing from bonds and and being invested into stocks.
"Expectations of a looser U.S. fiscal policy added fuel to the reflationary fire, triggering a bond sell-off across regions and classes on the one hand while also arranging for a strong return of equity inflows on the other hand," Bruckner wrote in a note to clients, according to Yahoo Finance.
Trump has signaled his plans to invest $1 trillion in U.S. infrastructure while providing a massive tax cut across all brackets, especially among the highest earners.
"We all assumed we were entering an era of left-wing democracy," Christopher Whalen of the Kroll Bond Rating Agency told Politico. "But now we have a pro-growth GOP president and a pro-growth GOP Congress and we have to completely reset the narrative."
Banking stocks have also been rising due to Trump's plans to largely gut the Dodd-Frank regulations that the Obama administration had put in place after Wall Street machinations resulted in the Great Recession in 2008.
"As of Nov. 8, the financial crisis is over," said banking analyst Michael Mayo of CLSA. "As of that day we go from bashing banks to using banks to help facilitate economic growth."
Wall Street bankers and speculators are currently expecting a Trump administration to roll back the majority of regulations put in place by President Barack Obama, rewinding the clock to the regulatory freedom they had enjoyed before the 2008 crash.
Consumer confidence has also risen, largely driven by self-identifying Republicans have a renewed optimism in the U.S. economy.
A Gallup survey found that while only 14 percent of Republicans had confidence in the economy improving before election day, 50 percent of Republicans were optimistic a week after Trump's election, Time magazine reports.
By being elected, Trump has ignited the highest level of economic confidence among Republicans in a decade. By contrast, Democrats' economic confidence dropped from 60 percent to 46 percent during the same time.