US markets close (^DJI, ^IXIC, ^GSPC) at record highs the day after Donald Trump’s presidential win in the 2024 election, and investors are betting bigger on corporate profits.

Director of Investments at Prime Capital Investment Advisors Will McGough joins Yahoo Finance Live and attributes the rally to pent-up optimism for future growth. McGough tells Josh Lipton and Julie Hyman that while inflation has been eating away at GDP (gross domestic product), the market is now focused on nominal productivity growth that could help the economy avoid a debt crisis.

“If we would have gotten the opposite news with the election today, it probably would have reversed,” McGough says.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Cindy Mizaku.