The S&P 500 zoomed past the psychologically significant 6,000 mark for the first time Friday, building on a sharp rally after Donald Trump won a second term as U.S. president.

All three major indexes surged to record highs on Nov. 6 following the election results as analysts expect corporations to benefit from Trump's plans to cut taxes and reduce regulations.

S&P 500 futures had crossed the 6,000 mark on Nov. 7. The benchmark index has rallied more than 25% this year, steadily gaining since the end of the previous bear market in October 2022.

The sharp gains in 2024 were largely powered by a steep rise in rate-sensitive megacap growth stocks on hopes of lower borrowing costs and optimism around a soft landing for the U.S. economy.

The Federal Reserve cut rates for the first time in four years in September, followed by a 25 basis point cut in November. Traders are pricing in one more reduction this year, as per CME FedWatch.

Information technology stocks fueled the rise on the S&P 500, led by companies such as AI leader Nvidia .

The index took just about nine months to add 1,000 points after hitting the 5,000 mark in early February. In contrast, it took nearly three years for the S&P 500 to climb from 4,000 in April 2021 to 5,000.

The equity rally, however, has stretched valuations, with the S&P 500 trading at 22.3 times forward earnings, the highest in two years, compared with a long-term average of 16. Most big brokerages expect the benchmark index to end the year below the 6,000 mark, though Evercore ISI sees it closing at that level.