US stock markets notch records: Russell 2000 weekly gain is the largest since 2000

Closing changes on the day:

• S&P 500 +0.4% – record close
• Nasdaq Comp +0.1%
• DJIA +0.6%
• Russell 2000 +0.7%
• Toronto TSX Comp -0.4%

Closing changes on the week:

• S&P 500 +4.7%
• Nasdaq Comp +5.7%
• Russell 2000 +8.6%
• Toronto TSX Comp +2.1%

Congratulations to everyone who held stocks through the election. The red sweep no doubt helped by I’ve argued many, many times that the trade on elections everywhere is always to buy the uncertainty, because the sun always rises the day after the vote.

The outperformance of the Russell 2000 comes down to:

1. It’s bank-heavy and the assumption is that Republicans will loosen banking regulations
2. It’s more domestic-focused and that should benefit from lower tax rates while not being hit as hard by tariffs

Notably, the Russell 2000 hasn’t hit a record and faces some resistance to get there. It will be a good spot to watch in the weeks ahead.