U.S. stocks rise in week as Trump rally slows

Oliver Renick

U.S. stocks added to the rally sparked by Donald Trump’s surprise election, rising for a second week on speculation the president-elect will introduce policies that will spark brisker economic growth.

The biggest beneficiary has been small caps, with the Russell 2000 Index rallying 11 straight days to cap its longest winning streak since 2003 as the dollar strengthened. The gauge ended the five days higher by 2.6 percent. The S&P 500 Index rose 0.8 percent, with financials again contributing the most to the advance. Technology shares joined the rally after concerns over trade policies faded. The Dow Jones Industrial average edged up for the week after touching a fresh high on Nov. 15.

The benchmark for American equity has added 2 percent since president-elect Donald Trump won the U.S. election, led by a surge in financial stocks and shares of industrial companies. While the former added to its rally in the week with a 2.2 percent advance, shares in companies that build bridges and make equipment were little changed. Health-care stocks that rallied 5.8 percent last week pared those gains with a 1.2 percent decline.

Since the election losses remain the biggest in dividend-paying groups like utilities, real estate and consumer staples shares that had led the market in the first half of the year.

The variation in returns among sectors has created an opportunity that some investors have seized upon, according to record flows into exchange-traded funds that track financial and industrial companies. That’s happened as dispersion within the stock market reached levels unseen since the start of the bull market — a good sign for active managers.

For more analysis of the stock market this week: Wall Street Says Industries Rallying Most are Ones Going NowhereTorrent of Cash Flowing to U.S. Stocks Abandons Lockstep MoveBond Rout Eats Into the One Remaining Valuation Case for StocksTrump Rotation Has Small Caps Leading by Most in Five Years To contact the reporter on this story: Oliver Renick in New York at orenick2@bloomberg.net. To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Eric J. Weiner

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