US stocks stormed ahead to record highs in post election euphoria, with frenetic buying in sectors deemed winners after the news that President Bill Clinton had won re election with the Republicans retaining control of Congress.

The Dow Industrials soared almost 97 points, or 1.59 per cent, to 6177.71, the first time the index has closed above 6,100, in its biggest single day gain since March. The Standard & Poor's 500 set a second straight record, climbing 10.46 to 724.60.

Analysts noted that stocks thrived under the politically divided US government after the Republicans took control of Congress in 1994. Wall Street had feared a Democratic sweep might spur more social spending, a ballooning deficit and greater inflation.

"The market is happy with the fact that there are no big changes. It's status quo. The market often dislikes uncertainty," said Mr Richard McCabe, chief technical analyst at Merrill Lynch.