Dow Rises to Record, Tech Shares Fall as Trump Policies Assessed

The rally in U.S. stocks faltered after the Dow Jones Industrial Average rose to an all-time high, as investors speculated on the industries and companies that stand to benefit from Donald Trump’s surprise election victory.

Banks and health-care shares surged on bets a Trump administration will roll back regulatory scrutiny of the industries. Industrial shares rallied as the Republican plans to boost infrastructure spending. Tech 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, damping demand for the shares’ relatively high dividend payouts.

“People are going through the possibilities about what Washington looks like today and what Washington can do or not do for them,” said John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York. “Corporations feel there’s a less restrictive hand. People may take that as a positive. It’s the end of the uncertainty.”

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