Nov 8 (Reuters) - The S&P 500 briefly touched the

psychologically significant 6,000 mark for the first time on

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.

The S&P 500 was last up 0.43% at 5,998.90.

"The market is reacting to a lower interest-rate

environment and the fact that we're through earning season and

that we had a presidential election that wasn't contested and it

went better than I think most people expected," said Robert

Pavlik, senior portfolio manager at Dakota Wealth

"In reality, (the 6,000 level) doesn't mean all that

much, it just is confirmation of a good environment and it gives

investors a reason to be positive."

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 ( NVDA )

.

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.