### Stock Market's Initial Post-Election Surge Fizzles Out

Market enthusiasm following Donald J. Trump’s presidential election victory has dwindled, with the S&P 500 recording a 2 percent decline for the week. Despite the drop, the index remains above its Election Day level.

On Friday, the S&P 500 closed 1.3 percent lower, marking a reversal from last week’s significant 4.7 percent gain, which was the index's largest weekly rise in over a year. Last week's surge was driven by the certainty of the election outcome, anticipation of pro-business policies under the Trump administration, and the Federal Reserve's decision to cut interest rates by a quarter point. The initial optimism, however, has started to fade as investors consider the potential economic impacts of Trump's proposed policies and his cabinet picks.

The tech-heavy Nasdaq experienced a substantial 3.4 percent drop for the week, while the Russell 2000, an index tracking smaller companies more responsive to the economy’s fluctuations, fell by 4 percent.

Amid this backdrop, the cryptocurrency market continues to thrive, with Bitcoin hitting a milestone by crossing the $90,000 price mark for the first time this week. This rise is fueled by expectations of lenient regulations from the Trump administration.

In other financial news, government bond yields increased slightly after the Census Bureau reported a rise in U.S. retail sales for October, which exceeded expectations and signaled robust consumer spending. The 10-year Treasury yield, a key determinant of borrowing costs like mortgage rates, finished the week at 4.4 percent, a bit higher than where it started.

The U.S. dollar also strengthened this week, hitting a new annual high on Wednesday. This uptick is partly due to speculation that Trump’s return to the White House could destabilize the global economy. Investors are keenly observing the Federal Reserve's trajectory regarding further rate cuts. Inflation concerns ignited by Trump’s policy proposals have led to uncertainty, despite slight annual inflation growth in October. Although the Federal Reserve cut interest rates for the second time this year last week, expectations for another cut in December have decreased following remarks from Fed Chair Jerome H. Powell on Thursday, stating that the central bank is not in a rush to lower rates.