US stocks closed higher on Friday in a modest but broad-based advance as Donald Trump was sworn in as US President, marking the first time in more than 50 years that a new commander in chief has been welcomed by a rising stock market on his first day in office.
"We're now trading off of reality rather than hope, and it's natural to be a bit more cautious when we make that transition," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts.
The S&P 500's 6.2-per cent gain since the election is one of the best performances for the American stock market for any presidential transition period of the modern era.
Former President Barack Obama's transition period, which came amid the throes of the 2008 financial crisis, overlapped a 15.5 per cent fall for the S&P 500 from his election to the day of his 2009 inauguration. Yet he presided over the second best run for the stock market under any president since Dwight Eisenhower.
The Dow Jones Industrial Average rose 94.57 points, or 0.48 percent, to 19,826.97, the S&P 500 gained 7.6 points, or 0.34 percent, to 2,271.29 and the Nasdaq Composite added 15.25 points, or 0.28 percent, to 5,555.33.
About 6.6 billion shares changed hands on US exchanges, higher than the 6.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.
The S&P 500 posted 19 new 52-week highs and seven new lows; the Nasdaq Composite recorded 85 new highs and 33 new lows.
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