US stocks open higher; Dow hits record

NEW YORK (REUTERS) - US stocks opened higher on Monday, with the Dow Jones Industrial average hitting a record high, as Donald Trump's unexpected victory in the US presidential election continued to lift the market.

Since Mr Trump's triumph last Tuesday, investors have been betting on his campaign promises to simplify regulation in the health and financial sectors and boost spending on infrastructure. The financial index rose 2.18 per cent to its highest level since 2008.

Goldman Sachs and JPMorgan provided the biggest boost to both the S&P 500 and the Dow. The Nasdaq Composite was little changed, weighed down by tech giants Apple, Facebook and Microsoft.

Stock markets around the world were affected by a continued selloff in the global bond market as investors looked for more clarity regarding Mr Trump's policies. The risk of faster domestic inflation and wider budget deficits if Mr Trump goes on a spending binge sent yields on US Treasury and other benchmark global bonds higher.

The US dollar index surged to an 11-month high. Yields on the US 10-year Treasury notes climbed to their highest since January on Monday at 2.30 per cent, while 30-year paper shot above 3 per cent.

"The bond market could subject the Trump rally to a halt,"said Peter Cardillo, chief market economist at First Standard Financial in New York. "The prospect of higher inflation due to higher fiscal spending under the Trump administration has caused bonds to sell off and while higher inflation is good for the US economy in the long run, it is seen as a negative factor in the short term because this market is used to near zero interest rates."

At 9:45 a.m. EDT (10.45 p.m Singapore time) the Dow Jones industrial average was up 44.14 points, or 0.23 per cent, at 18,891.8. The S&P 500 was up 2.23 points, or 0.1 per cent, at 2,166.68. The Nasdaq Composite was down 0.67 points, or 0.01 per cent, at 5,236.44. Six of the 11 major S&P sectors were lower, with the utilities index's 0.93 per cent fall leading the decliners.