Jamie Gray is a business reporter for the NZ Herald

Wall St edges to record after Trump win

President-elect Donald Trump gestures during his campaign state at the University of Wisconsin. Photo / AP.
President-elect Donald Trump gestures during his campaign state at the University of Wisconsin. Photo / AP.

The US share market is heading for a record close in the aftermath Donald Trump's surprise win in the presidential election.

By 9.20 am NZT the blue chip Dow Jones Industrial Average was at 18,838 - up 248 points or 1.3 per cent, its highest ever point.

Banks and health-care shares surged on bets that a Trump administration would roll back regulatory scrutiny of the industries. Industrial shares rallied as the Republican plans to boost infrastructure spending, Bloomberg reported.

Technology shares plummeted, with losses mushrooming in the biggest names. Utility and real-estate stocks tumbled as a rout in bonds pushed the 10-year yield higher, dampening demand for the shares' relatively high dividend payouts.

Trump's promise to revive American infrastructure means commodities used to build everything from airports to bridges will benefit under his presidency, according to Goldman Sachs.

"Yields are moving their way higher, that's good for banks," said Art Hogan, chief market strategist and director of research for Wunderlich Securities in Boston told Bloomberg .

"If there's going to be a friendlier regulatory environment that's going to be good for banks. That's the tailwind behind financials we haven't seen for a long time," he said.

The New Zealand closed on Thursday with a 1.04 per cent gain on the NZX-50 index, after earlier jumping by 3.3 per cent on the index in the opening minutes of trade. Trade on the local market resumes at 10 am.

- NZ Herald

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter

SIGN UP NOW

© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf05 at 17 Jan 2017 18:55:28 Processing Time: 434ms