US stocks surge to record highs; DJIA gains over 1,000 points after Trump victory
Investing.com -- U.S. stocks soared Wednesday as Donald Trump was elected the 47th President of the United States, while the Republicans were on course to sweep the Senate and the House.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average surged 1,220 points, or 2.9%, the S&P 500 index rose 120 points, or 2.1%, and the NASDAQ Composite climbed 415 points, or 2.3%.
All three indices soared to all-time highs, with the last time the Dow jumped over 1,000 in a single day being in November 2022. Trump wins White House; Red sweep likely
The Associated Press and other major news networks have declared Trump the winner of the 2024 presidential election, confirming his return to the White House.
Meanwhile, the Republicans have taken a majority in the Senate, the upper chamber of the US Congress, and were also on track to win the House of Representatives, raising the possibility of a Republican sweep in the 2024 elections.
"The big question for markets now is whether Trump’s win will bring full Republican control or a split government. If Republicans take both chambers, Trump could have more room to cut corporate taxes—a potential boost for investor confidence, ” said Russell Shor, Senior Market Specialist at Tradu.
Republican control of Congress--the so-called "red sweep"--presents a much easier path for Trump to enact major policy changes. Trump is widely expected to enact more inflationary policies, given his largely protectionist stances on immigration and trade.
The dollar and Treasury yields shot up on this notion, with the greenback hitting a near four-month high.
A swift conclusion to the 2024 elections also presents the clearing of a major point of uncertainty for stock markets, given the turmoil that surrounded the conclusion of the 2020 presidential election. Stocks linked with Trump soar
Individual stocks closely associated with the Trump campaign also benefited strongly Wednesday.
Trump Media & Technology (NASDAQ:DJT ), which owns the Truth Social platform and is primarily owned by Donald Trump, soared 30%.
Tesla (NASDAQ:TSLA ) stock rose 14%, with the electric vehicle giant viewed as a key beneficiary of a Trump win, as CEO Elon Musk was a major backer of the former president’s campaign.
Citigroup (NYSE:C ), Bank of America (NYSE:BAC ) and Wells Fargo (NYSE:WFC ) all rose strongly as investors waged that the new Trump presidency would result in less regulation in the banking sector.
Coinbase Global (NASDAQ:COIN ) stock rose 13%, with the cryptocurrency exchange helped by bitcoin climbing to a record high as Trump has positioned himself as pro-cryptocurrency.
On the flip side, First Solar (NASDAQ:FSLR ) stock fell 15%, falling along with other renewable energy firms, with Trump expected to roll back many of the climate regulations passed under President Joe Biden. Fed meeting in spotlight
The central bank is widely expected to cut interest rates by 25 basis points at the conclusion of a two-day meeting on Thursday.
Any signaling on the Fed’s plan for future rate cuts will be closely watched, given recent signs of stickiness in U.S. inflation. The central bank has signaled a largely data-driven approach to future easing. Crude prices slip lower after API release
Oil prices fell Wednesday after industry data pointed to a rise in US crude stockpiles, while the dollar surged on Trump’s election progress.
By 09:35 ET, the Brent contract slipped 1.7% to $74.26 per barrel, while U.S. crude futures (WTI) traded 1.6% lower at $70.81 per barrel.
Data from the American Petroleum Institute data, released on Tuesday, showed that U.S. crude inventories rose by 3.13 million barrels last week, higher than the expected 1.1 million barrels.
The official inventory numbers are due later on Wednesday, but if the API release is confirmed it would spur some concerns that U.S. fuel demand was cooling, especially as the winter season approaches.
(Ambar Warrick contributed to this article.)
Source: Investing.com
