The Dow and S&P 500 Wednesday closed at fresh records after Tuesday's election swept Republicans into power in both Houses of Congress and lifted hopes for pro-business policies.
The Dow Jones Industrial Average jumped 100.69 points (0.58 percent) to 17,484.53, about 95 points above the previous record. The S&P 500 gained 11.47 (0.57 percent) to 2,023.57, while the tech-rich Nasdaq Composite Index dipped 2.91 (0.06 percent) to 4,620.72.
Jack Ablin, chief investment officer at BMO Private Bank, said investors were hopeful the election would boost the prospects for tax reform, the Keystone oil pipeline and immigration reform, among other issues.
"We're seeing some conciliatory remarks from (President Barack) Obama," Ablin said. "Perhaps we'll have some kind of detente with the Republicans."
Fresh economic data was firm. Payroll company ADP said the US private sector added 230,000 jobs in October, above the 220,000 projected by analysts.
The purchasing managers index for the US services sector fell modestly to 57.1 in October from 58.6 in September, but remained well above the level of the first half of this year.