Donald Trump’s election victory made for a seismic week on Wall Street — but investors should guard against getting pulled into emotionally charged market narratives that might not endure.

Stocks closed at record highs on Friday, with the S&P 500, Dow Jones, and Nasdaq 100 all notching their biggest weekly gain of the year.

President-elect Donald Trump’s win, coupled with a quarter-point interest rate cut from the Federal Reserve, pushed major stock indexes into record territory.

The Dow’s strong gain this year favored the Democrats and Kamala Harris. But Wall Street is increasingly disconnected from Main Street.

"This is the dawn of a new era for prediction markets," Kalshi's founder said. Betting markets called Trump's win weeks before the election.

The full reality of what a second Trump term means for businesses and the economy is still settling in. Why it matters: The kind of ebullience that investors have expressed in the markets post-election this week may not last.

Friday capped a historic week for U.S. politics and the stock market, with the Presidential election finally coming to an end with Donald Trump as the victor. The S&P 500 (SP500) crossed the 6,000-point milestone for the first time as well this week.

The stock market surged to highs on Donald Trump's election win. A Fed rate cut and a slew of big earnings reports filled out a busy week.