As investors placed wagers on the potential effects of Donald Trump's return to the White House on the global economy, the U.S. stock market, banks, Elon Musk's Tesla, and bitcoin all surged higher on Wednesday. The renewable energy sector and possibly anyone concerned about rising inflation are among the losers the market perceives.
S&P 500
The S&P 500 had its best day in almost two years with a 2.5 per cent gain. Former president Donald Trump has won the election, which led a rally on Wall Street. S&P 500 was showing enthusiasm after Republican’s victory zooming about 2.53 per cent amounting to 146.28 points on the New York Stock Exchange, propelling the index to a new all time high level of 5,936.14 points.
The index rang the opening bell at 5,864.89 points which was a 1.42 per cent surge at opening bell level, the S&P 500 concluded at 5,929.04 points after record breaking rally on the bourses.
Nasdaq Composite
The tech heavy index containing top tech companies, including the magnificent seven companies like Apple, Amazon, Alphabet, and Microsoft, all aforementioned companies, pushed the Nasdaq composite to an all-time high level of 19,000.50 points after hitting the opening bell at 18,772.76 points, zooming 1.8 per cent compared to the closing level of the previous trading session, which stood at 18,439.17 points.
The Nasdaq composite increased 2.95 per cent, on the vote counting day, which resulted in Donald Trump triumphing in election over Kamala Harris, making the traders happy about further rally extending in tech sector and companies across the globe, which further propelled the index and concluded the index at 18,983.46 points with a 2.95 per cent jump amounting to 544.29 points.
Dow Jones Industrial Average
The Dow Jones Industrial Average jumped 3.6 per cent amounting to 1,508 points. Dow jones also saw the rally extending after Trump’s Victory in the Race to the white house. The index rocketed up to a new record level of 43,778.78 points after smashing the opening bell with a surge of 1.48 per cent amounting to 628.58 points.
The dow jones industrial average shot up to all time high level of 43,778.78 points to conclude at high level of 43,727.80 points on the US bourses.
Reasons behind rally
The market was driven higher by bank stocks, partly due to expectations that a more robust economy would result in more consumers taking out loans and repaying them with interest. A Republican White House's promise of relaxed regulation also served as a rallying cry.
Investors also believe that Trump's policies, especially tariffs, which can raise the cost-of-living expenses for American households, will probably contribute to future inflation.A decline in immigration may also result in a shortage of workers for employers, which might compel them to increase worker wages more quickly and drive up inflation.
Historically, the U.S. stock market has risen regardless of the party that wins the presidency, with Democrats seeing larger average gains since 1945. However, investors are increasing their wagers on the effects of Trump's preferred higher tariffs, lower tax rates, and less regulation, which could result in significant changes to the industries that are currently winning and losing.
