Dow Jones Soars to High After Trump Wins, Biggest Gain in Two Years

The DOW JONES rose 1,335 points, or 3.18%, to 43,523 and the S&P 500 rose 1.97% to 5,895. The NASDAQ index added 1.78% to 18,765 points.

The last time the Dow Jones Industrial Average rose more than 1,000 points in one day was November 2022.. Moreover, today’s impulse directs it towards new all-time highs. So far, its highest close was on October 18 when it ended at 43,275.91 points. On that day, its intraday high was 43,325.09 points.

Wall Street had already posted a very positive session yesterday even before the election results came in, with the S&P 500 up 1.2%, bringing the benchmark index’s 2024 gain to over 21%, while the Dow added 1.02 %, and Nasdaq added 1.43%.

All attention was focused on the US presidential elections. Although a very close fight was expected, in the end Republican candidate Donald Trump clearly defeated Democrat Kamala Harris, so he will be back in the White House in four years.. Given the data that has been carefully examined so far, Trump achieved an elected victory with 277 electoral votes compared to the current vice president’s 224 votes. The threshold for victory was set at 270. He also clearly won the votes – 70.84 million to Harris’ 65.93. Or, what is the same thing, 51% of the total compared to 47.5%.

In his first words, Trump promised to “fix everything that’s wrong in this country.”

Congressional projections point to Republican control, although that is not yet official. Yes, it is in the Senate, where with 51 seats compared to 42 seats, Democrats will have a Republican majority. Democrats were expected to take control of the House of Representatives before the election. The Republican wave could lead to more radical spending changes or a major overhaul of fiscal policy.

.

“This looks like a presidential victory for Trump, but also a Republican victory in the House and Senate. If this happens, we will see the American economy really take off,” says Mark Mobius, president of the Moebius Foundation for New Opportunities, in a statement to CNBC.

The election results are reflected in significant gains in the stock market for stocks believed to benefit from a Trump presidency. Tesla, whose CEO Elon Musk is a prominent Trump supporter, sees its shares soar 12% on the first market transactions. Trump himself mentioned Musk during his speech this morning, calling him a “super genius.” “We must protect our geniuses,” he noted, “we don’t have many of them.”

Bank stocks are also getting strong gains, with JPMorgan Chase up more than 5% and Bank of America up more than 6%.

The Russell 2000 index of small-cap stocks, which are also seen as beneficiaries of the incoming administration, rose 6%. The market believes Trump’s return will lead to more inward-looking economic policies while corporate tax rates remain low and borrowing rates fall. Among the big winners, shares of private prison operators CoreCivic and GEO Group rose about 20%.

Shares of Trump Media & Technology Group, a social media company closely linked to Trump, rose 50% ahead of the open, although they were up 27.5% in the early stages of the regular session.

All markets today are in one way or another shocked by Trump’s victory. Bitcoin is one of the best-performing assets, soaring to an all-time high of $75,000 and lifting stocks like Coinbase, which rose 12%, and Robinhood, which rose 10.7%.

Meanwhile, renewable energy stocks are falling sharply as investors believe a Trump presidency will damage the sector. Sunnova shares fell 26% and Sunrun fell 15%. First Solar shares fell 13%.

Trump’s second term is expected to stand in stark contrast to the presidency of Joe Biden, who has set an aggressive goal to decarbonize the nation’s power grid, pledged to reach 30 gigawatts of offshore wind power by 2030 and introduced sweeping climate legislation that favors renewable energy. Actually, Trump has vowed to end the country’s offshore wind projects as one of his first measures after taking office.

Regardless of the consequences of Trump’s victory, earnings season continues. CVS Health reported a mixed report today as higher medical costs squeezed its profits. The company reported adjusted earnings per share of $1.09, compared with market expectations of $1.51. However, revenue amounted to 95.430 million, exceeding market expectations of 92.750 million. Its shares rose more than 10% this morning in New York.

Rising dollar and bond yields

Elsewhere in markets, the dollar index rose to its highest level since July on confidence that Trump’s proposed tariffs against major U.S. trading partners would boost the dollar. The euro fell 1.94% against the US pair to $1.0715 for each community currency.

In commodity markets, oil prices are falling: a barrel of European Brent fell by 1.80% to $74.17. US West Texas futures are now down 1.76% at $70.72. Gold fell 2.74% to $2,674 an ounce.

In fixed income, The yield on the 10-year Treasury note rose to about 4.471%. amid speculation that Trump’s proposed tax cuts and other spending plans would boost economic growth but also widen the budget deficit and reignite inflation.