By Lisa Pauline Mattackal and Ankika Biswas
(Reuters) -The U.S. and Dow were on track to open at a record high on Wednesday as Republican Donald Trump won the 2024 U.S. presidential election in a remarkable comeback four years after he was ousted from the White House.
it soared more than 1,300 points and those following the benchmark inched closer to the psychologically significant level of 6,000.
Wall Street anticipates the possibility of lower taxes, deregulation and a US president who is quick to talk about everything from the stock market to the dollar.
The Republican's victory fueled a rally in Trump trading, as US Treasury yields rose, bitcoin hit a record high and the dollar gained. (MKTS/GLOB)
“There was relief that there was a quick and indisputable election result, while Trump's victory was seen as a big positive for American corporations because of his promises to cut taxes and remove regulations,” said David Morrison, senior market analyst at Trade Nation. .
Futures tracking small caps rose 6.2% to their highest levels since early 2022, as domestic market-focused stocks hope to benefit from an easier regulatory and tax regime, as well as being less exposed to possible import tariffs.
The , a measure of market volatility, fell sharply to its lowest level since September. Until the results, investors were preparing for several days of uncertainty about who would be the winner of the presidency.
stocks expected to do well during a second Trump term posted strong gains in premarket trading.
Trump Media & technology Group soared 30.7%, while Tesla (NASDAQ jumped 12.6%, as major shareholder and CEO Elon Musk supported Trump in his election campaign.
Bank shares soared as yields rose and investors expected them to benefit from less regulation. JPMorgan Chase (NYSE and Bank of America rose more than 7% each, while the SPDR S&P Regional Banking ETF (NYSE gained 7.8%.
Strong gains were also seen in shares of cryptocurrency companies, energy companies and prison operators, while renewable energy stocks fell.
Dow E-minis rose 1,309 points, or 3.09%, S&P 500 E-minis rose 132 points, or 2.27%, and E-minis rose 357.25 points, or 1.76% .
Wall Street analysts expect Trump's plans for immigration restrictions, tax cuts and broad tariffs to put upward pressure on inflation and bond yields, while corporations could benefit from his tax and regulatory policies.
“With the possibility of increased stimulus and reduced restrictions or regulations on industries, we could end up seeing the market post a strong rebound between now and the end of the year,” said Sam Stovall, chief investment strategist at CFRA Research.
Market attention focused on whether the Republican Party could maintain its majority in the House of Representatives after taking 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 pushing through his desired legislation.
Later in the day, the Federal Reserve will begin its two-day meeting in which the central bank is expected to reduce the benchmark interest rate by 25 basis points.
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=();t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)(0);s.parentNode.insertBefore(t,s)}(window, document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);
