Stocks Surged After the Election. Will They Keep Going Up in 2025?

You may have noticed that the stock market has been on a tear. In November, the S&P 500 index – which represents about 80% of the US stock market’s value – cracked the 6,000 mark for the first time in history. Earlier this month, the S&P 500 and Nasdaq each hit record highs.
If you’re wondering what’s driving the stock market right now and whether the momentum can continue, you’re in the right place. We’ll explain some factors affecting the stock market, like the election and the Federal Reserve’s recent rate cuts, and help you decide whether now is the time to invest.
What’s affecting the stock market right now?
The stock market is basically a marketplace where you can buy and sell shares of a company. If the company performs well, the stock price rises and you could earn money; if it performs poorly, you can lose money. However, there are a lot of other outside factors that are currently impacting the stock market’s performance.
Election
Stocks rallied immediately after former President Donald Trump won his re-election bid, although it’s fairly typical for the stock market to get a bump after the election. But on Nov. 6, the day after election day, the S&P 500 notched its best day in two years, suggesting that investors are bullish about a second Trump presidency. The Dow Jones Industrial Index and Nasdaq composite jumped by 3.6% and 3%, respectively.