S&P 500 erases rally after election as index leader for worst week since September

On By Littum

The S&P 500 has now erased all the gains that followed President-elect Donald Trump’s victory in the November 5 US election.

In the latest trade, the index stood at 5,844. On Nov. 6, the morning after Trump was declared the winner after sweeping the swing states, the index opened at 5,864.

Both the S&P 500 and the Nasdaq Composite were headed for their worst weekly showings since Sept. 6, as concerns about the strength of the U.S. labor market resurfaced to rattle the markets. The Dow, meanwhile, was on track for its biggest weekly percentage point decline since March 2023.

Rising Treasury yields and the Federal Reserve’s latest projections regarding its plans to cut rates in 2025 have been blamed for contributing to the turbulence in stocks. However, signs that the rally was losing steam have been piling up since the start of December.