Market Insider

History indicates Trump rally could continue for now

Donald Trump gestures as he addresses supporters at a rally in Miami, Florida on November 2, 2016.
Rhona Wise | AFP | Getty Images

The so-called Trump rally stands a good chance of continuing in the weeks ahead of the inauguration, especially as stocks enter one of their historically strongest periods of the year.

December is the best month for the and the second best for the Dow Jones industrial average since 1950, with an average gain of 1.6 percent for each index, according to the "Stock Trader's Almanac."

U.S. stocks have surged to all-time highs on promises of tax cuts and infrastructure spending after President-elect Donald Trump won the election in early November. Most encouraging for analysts, the broad market looks healthy as several different indexes from small-caps to the industrials sector have posted records, while economic data has been solid.