US election: Wall Street hits record high as former President Donald Trump becomes President-elect
Wall Street’s main indexes have soared to record highs as Republican Donald Trump won the 2024 US presidential election in a remarkable comeback four years after he was voted out of the White House.
Wall Street is anticipating lower taxes, deregulation and a president who is quick to sound off on everything from the stock market to the US dollar, even though tariff hikes could bring challenges in the form of higher deficit and inflation.
The Republican’s win powered a rally in Trump trades as US Treasury yields surged, bitcoin hit a record high and the US dollar gained.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.The Dow added more than 1,250 points while the benchmark index inched closer to the psychologically significant 6,000 level.
“There was relief that there was a quick and undisputed election result,” said David Morrison, senior market analyst, Trade Nation.
The small-cap Russell 2000 jumped 4.1 per cent to a nearly three-year high as domestic-focused stocks expect to benefit from an easier regulatory and tax regime as well as be less exposed to likely import tariffs.
The VIX, a measure of market volatility, dropped nearly 5 points to its lowest since September.
Until the results, investors were bracing for several days of uncertainty over who the winner of the presidency would be.
“With the possibility of higher stimulus and reduced restrictions or regulations on industries, we could end up seeing the market post a strong rally between now and the end of the year,” said Sam Stovall, chief investment strategist at CFRA Research.
Most of the S&P 500’s sectors were trading higher.
Financials led the gains with a 5.1 per cent surge to touch a record high as yields rose and investors expected them to benefit from less regulation.
The energy, industrials and consumer discretionary sectors were all up more than 2.0 per cent.
However, rate-sensitive real estate and utilities slipped, pressured by higher yields.
Stocks that are expected to perform well under a second Trump term posted strong gains, with Trump Media & Technology Group up 16 per cent.
Tesla leapt 13.4 per cent as CEO Elon Musk has supported Trump in his electoral campaign.
Strong gains were also seen in shares of cryptocurrency companies, energy firms and prison operators while renewable energy shares fell.
The Dow Jones Industrial Average .DJI rose 1,190 points, or 2.82 per cent, to 43412.81, the S&P 500 rose 93.73 points, or 1.62 per cent, to 5,876.49 while the Nasdaq Composite rose 312.049 points, or 1.69 per cent, to 18,751.22.
Market focus turned to whether the Republican party could maintain a majority in the House of Representatives after gaining control of the US Senate.
A “clean sweep”, in which one party captures the presidency, the House and the Senate would give Trump an easier route to push through desired legislation.
Later in the day, the Federal Reserve will start its two-day meeting where the central bank is expected to ease the benchmark interest rate by 25 basis points.
