US stocks were on course for their best week in a year on Friday following a frenzied rally sparked by Donald Trump’s sweeping election victory. The S&P 500 was up 0.4 per cent at 5,997 by early afternoon in New York, close to breaking through 6,000 for the first time and up 4.6 per cent for the week.
“Ultimately, as Powell said last night, anyone whose job it is to predict the economy will tell you how hard it is,” said William Vaughan, an associate portfolio manager at Brandywine Global Investment Management. “It is important to focus on announced policies rather than pre-election rhetoric, which can often be extreme to win an election.” On Friday a rally in US Treasuries led them to recover almost all the ground lost in the initial dramatic sell-off sparked by Trump’s victory.