Dow soars over 1,250 points as Wall Street hits new highs on Donald Trump's poll win as US President

9 hours ago

Stocks Soar As Trump Wins 2024 Election

On Wednesday, the primary stock market indexes on Wall Street reached all-time highs, following Republican Donald Trump’s surprising victory in the 2024 U.S. presidential election, marking a significant turnaround after his defeat four years ago.

Wall Street is looking forward to reduced taxes, less regulation, and a U.S. president who is quick to share opinions on various topics, including the stock market and the value of the dollar. However, potential tariff increases might lead to difficulties, such as a growing deficit and rising inflation.

The Republican victory sparked an increase in stocks related to Trump, while U.S. Treasury yields rose sharply. Bitcoin reached a new all-time high, and the dollar strengthened.

The Dow gained over 1,250 points, bringing the main index closer to the important milestone of 6,000.

David Morrison, a senior market analyst at Trade Nation, expressed his relief that the election results came in quickly and without any controversy.

The Russell 2000, which includes smaller companies, surged 4.1% to reach its highest level in almost three years. This increase reflects optimism among domestic companies about potential advantages from a simpler set of regulations and tax policies, along with reduced risk from possible import tariffs.

The VIX, which gauges market fluctuations, fell by almost 5 points, reaching its lowest level since September. Leading up to the results, investors were preparing for days of uncertainty regarding the identity of the presidential winner.

Sam Stovall, chief investment strategist at CFRA Research, mentioned that if there are increased stimulus measures and fewer restrictions or regulations on businesses, we might witness a significant market rally from now until the year's end.

The majority of the sectors in the S&P 500 experienced an upward trend. The financial sector drove the growth with a notable increase of 5.1%, reaching an all-time high as interest rates climbed and investors anticipated that reduced regulation would be advantageous for them.

The Energy, Industrials, and Consumer Discretionary sectors each saw an increase of over 2%. On the other hand, the real estate and utilities sectors, which are sensitive to interest rates, experienced a decline due to rising yields.

Shares that are anticipated to do well during a potential second term for Trump saw significant increases, with Trump Media & Technology Group rising by 16%. Tesla surged 13.4%, likely influenced by CEO Elon Musk's endorsement of Trump's campaign.

There were significant increases in the stock prices of cryptocurrency companies, energy firms, and prison management companies, but shares in the renewable energy sector saw a decline.

The Dow Jones Industrial Average increased by 1,190 points, equivalent to 2.82%, reaching a total of 43,412.81. The S&P 500 saw a gain of 93.73 points, or 1.62%, climbing to 5,876.49, and the Nasdaq Composite rose by 312.049 points, or 1.69%, bringing it to 18,751.22.

Attention shifted to whether the Republican party would be able to keep a majority in the House of Representatives after taking control of the U.S. Senate.

A "clean sweep," where one political party wins the presidency, the House of Representatives, and the Senate, would make it simpler for Trump to pass the laws he wants.

Later today, the Federal Reserve will kick off a two-day meeting, during which the central bank is anticipated to reduce the benchmark interest rate by 25 basis points.

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