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Wall Street Set to Resume its Post-Election Rally

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Wall Street was set to resume its post-election rally on Monday, with stock futures indicating a new closing record for the Dow industrials, on continued hopes that the policies of President-elect Donald Trump will deliver strong economic growth.

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Alongside rising stock futures, the dollar was surging across the board, while U.S. Treasury bonds came under renewed pressure.

Last week the Dow recorded its biggest weekly gain since 2011 and a record close of 18,847.66. Stock futures are indicating that the Dow could surpass that record on Monday, with a current level of 18,899.

The S&P 500 saw its biggest weekly gain since October 2014, while the Nasdaq Composite rose 3.8%, its biggest one-week jump since February.

"A Trump Presidency has suddenly gone from being the least desirable outcome, to say the least, for the markets to being responsible for the Dow soaring to record highs and bullish hysteria sweeping through the markets," wrote Craig Erlam, senior market analyst in a note to clients on Monday.

But he said investors need to wait and see how Trump will work with Congress and how much fiscal slack he has to fund his ambitious spending plans, Erlam added. "For now, it will be all about the transition and who is going to be given the key positions in his team, which we should find out more about in the days ahead," he said.

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Investors will hear from Fed Chairwoman Janet Yellen this week as she testifies before Congress about the economic outlook, roughly a month before a Fed meeting, which many believe could deliver a U.S. interest-rate hike.

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