reason stocks: And it is also part of the reason why Treasury bonds sold off sharply, sending yields soaring, according to Market Watch. See Trump president-elect as much of a shocker as stock market rally What traders saw was a far more expansive fiscal policy than what they had imagined under Hillary Clinton, wrote Thierry Albert Wizman, global interest-rates and currencies strategist at Macquarie. Those bets might underestimate potential political pitfalls, but expectations expansionary fiscal policy will boost economic growth and boost inflation are part of the reason stocks quickly recovered from the swoon that sent futures sharply lower as a surprise Trump victory in the presidential election became apparent late Tuesday night. Moreover, with the Republican sweep of the House and Senate, the prospect that President Trump will actually enact low tax/high-spending policies a fiscal expansion was seen to have gotten credible and valid. Read How Donald Trump win could affect your wallet Stocks charged higher on Wednesday and followed through to the upside on Thursday, with the Dow Jones Industrial Average DJIA, 0.21% notching a record high and the S&P 500 SPX, -0.14% gaining ground while the Nasdaq Composite COMP, 0.54% slumped. Many Republican lawmakers, including House Speaker Paul Ryan, would likely be reluctant to significantly expand the deficit, however, which could ultimately limit the scope of fiscal measures, analysts said.
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