Market Insider

The Trump rally may be over for now: BlackRock analyst

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Nov. 28, 2016.
Michael Nagle | Bloomberg | Getty Images

The rally in U.S. stocks may have topped out for now, one major strategist says.

"I think the U.S. market needs time to digest the recent gains," said Russ Koesterich, head of asset allocation for BlackRock's Global Allocation Fund.

The three major domestic indexes and the small-cap Russell 2000 index have surged to record highs in the days since the presidential election. Banks have led the rally, and industrials have hit all-time highs as investors bet on President-elect Donald Trump's promises of infrastructure spending, tax cuts and slashed regulations.

The Russell 2000 has been a top performer, up more than 12 percent since the election while the has risen just more than 3 percent.