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US stock market experiences sharp surge following Trumps victory
(MENAFN) The US Stock market and other financial assets experienced a sharp surge on Wednesday following media reports declaring Donald trump the winner of the 2024 presidential election. Vice President Kamala Harris has officially congratulated Trump, signaling a formal concession of the race.
On Wednesday, the Dow Jones Industrial Average soared by more than 1,430 points, or 3.4%, marking the largest one-day increase for the index since November 2022. Both the broader S&P 500 and the tech-heavy nasdaq also reached record highs, rising more than 2%. Meanwhile, the Russell 2000, which tracks smaller companies sensitive to domestic economic changes, surged by 4.7%, fueled by expectations of tax cuts and protectionist policies under Trump.
The 10-year Treasury yield rose to 4.43%, and the dollar index jumped by 1.7% to 105.13.
David Bahnsen, chief investment officer at The Bahnsen Group, noted that investor sentiment is currently "pro-growth, pro-deregulation, and pro-markets." He pointed to expectations of increased mergers and acquisitions activity, as well as further tax cuts or extensions of existing ones, creating a favorable backdrop for stocks.
The cryptocurrency market also responded positively, with Bitcoin reaching an all-time high of $75,000 per coin, as investors anticipate more market-friendly policies under Trump, who has expressed support for digital assets. Tesla, led by Trump supporter Elon Musk, saw its shares soar nearly 14%.
However, Angelo Kourkafas, senior investment strategist at Edward Jones, suggested that while the surge in stocks is partly due to Trump’s victory, it also reflects relief at the clarity of the election outcome. Kourkafas cautioned that the rally could lose some momentum in the coming days, as markets often overreact the day after an election.
On Wednesday, the Dow Jones Industrial Average soared by more than 1,430 points, or 3.4%, marking the largest one-day increase for the index since November 2022. Both the broader S&P 500 and the tech-heavy nasdaq also reached record highs, rising more than 2%. Meanwhile, the Russell 2000, which tracks smaller companies sensitive to domestic economic changes, surged by 4.7%, fueled by expectations of tax cuts and protectionist policies under Trump.
The 10-year Treasury yield rose to 4.43%, and the dollar index jumped by 1.7% to 105.13.
David Bahnsen, chief investment officer at The Bahnsen Group, noted that investor sentiment is currently "pro-growth, pro-deregulation, and pro-markets." He pointed to expectations of increased mergers and acquisitions activity, as well as further tax cuts or extensions of existing ones, creating a favorable backdrop for stocks.
The cryptocurrency market also responded positively, with Bitcoin reaching an all-time high of $75,000 per coin, as investors anticipate more market-friendly policies under Trump, who has expressed support for digital assets. Tesla, led by Trump supporter Elon Musk, saw its shares soar nearly 14%.
However, Angelo Kourkafas, senior investment strategist at Edward Jones, suggested that while the surge in stocks is partly due to Trump’s victory, it also reflects relief at the clarity of the election outcome. Kourkafas cautioned that the rally could lose some momentum in the coming days, as markets often overreact the day after an election.
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