Stocks soared Wednesday morning on news that former President Trump secured a second term in the White House and Republicans gained a majority in the Senate.
The Dow Jones Industrial Average rose 1,341 points (about 3.1%) as the market opened, hitting a record high. This is the first time since November 2022 that the index has increased by more than 1,000 points in a single day.
The S&P 500 also rose 1.9%, and the Nasdaq rose 1.8%.
Despite big business concerns over President Trump's plan to impose blanket tariffs on imports into the U.S., Wall Street is hopeful of tax cuts and regulatory relief during Trump's second term in office. .
During President Trump's first term, the 2017 tax plan signed into law lowered the corporate tax rate to 21%. He hinted at further cuts to the corporate tax rate in June at a business roundtable event attended by some of the nation's most powerful executives.
The shift to a Republican majority in the Senate makes it more likely that President Trump will be able to realize his vision in 2025, when many of the existing provisions expire.
“A Senate victory could have a significant impact on some of President Trump’s policies, particularly extending expired tax cuts, as Senate Republicans could use the reconciliation process to circumvent the Senate filibuster.” But that only makes sense if Republicans retain control of the House,” said Brian Gardner, chief Washington policy strategist at investment bank Stifel.
Several House elections have yet to be called, and the majority is undecided at market open. Experts say it could take several days to decide which party controls the House of Commons.
Suzanne Clark, president and CEO of the U.S. Chamber of Commerce, a giant lobbying group that represents the interests of big business in Washington, congratulated the president-elect and said the organization was a “professional I look forward to working with both Republicans and Democrats in Congress to preserve this.” -Growth tax policies, bring deregulation to business, harness the power of AI to drive American innovation, and expand energy production policies on all of the above. ”
The decisive early decision also came as a relief to investors who had been waiting days for presidential election announcements in 2020.
“The fact that the outcome of the race is known will be welcomed by investors, as the country will not have to repeat the 2020 process.Stock markets will see this news as a boost to economic growth and see it as a Trump victory. We expect prices to rise as a result of this,” Gardner said.
The price of 1 Bitcoin also reached an all-time high on Wednesday morning, surpassing the $73,881 level before the market opened on Wednesday. After bashing the technology throughout his first term, Trump reversed his stance on cryptocurrencies during the 2024 campaign, seeking to align himself with an increasingly powerful industry.
Shares of Trump Media & Technology Group, which operates President Trump's Truth Social platform, also rose more than 24% after the market opened. While the stock is still below its high of $79.38 when the company debuted on the Nasdaq in March, it has rebounded significantly from its low of $11.75.
Tesla stock also rose nearly 15% on Wednesday morning. Company founder Elon Musk Election Night with President TrumpAfter pumping tens of millions of dollars into the pro-Trump super PAC America PAC, the group spent $86.8 million backing Trump and $57.9 million attacking Vice President Kamala Harris in battleground states.
Updated at 9:40am EST
