Written by Lisa Pauline Matakkal and Ankika Biswas
(Reuters) – Wall Street's major indexes rose to record highs on Wednesday after Republican Donald Trump won the 2024 U.S. presidential election in a remarkable comeback four years after losing the White House. .
Wall Street expects U.S. president to be quick to slam tax cuts, deregulation and everything from the stock market to the dollar, even though higher tariffs could pose challenges of higher deficits and inflation I am doing it.
The Republican victory accelerated the rally in Trump's market, U.S. Treasury yields soared, Bitcoin hit a new all-time high, and the dollar strengthened. [MKTS/GLOB]
The Dow Jones Industrial Average rose more than 1,250 points, with the benchmark index inching closer to the psychologically important 6,000 level.
“We are relieved to see a swift and uncontroversial election result,” said David Morrison, senior market analyst at Trade Nation.
The small-cap Russell 2000 rose 4.1%, hitting a nearly three-year high. Domestic-focused stocks are expected to benefit from easing regulations and taxation, and the impact of import duties will be reduced.
The VIX index, which measures market volatility, fell nearly 5 points to its lowest level since September. Investors were bracing for days of uncertainty over who will win the presidential election until the results come in.
“More stimulus and the potential for fewer restrictions and regulations on the industry could ultimately lead to a strong market rally between now and the end of the year,” said Sam Stovall, chief investment strategist at CFRA Research. “There is,” he said.
Most S&P 500 sectors rose. Financial stocks led the rally, rising 5.1% to a record high as yields rose and investors expected to benefit from deregulation.
The energy, industrials and consumer discretionary sectors all rose more than 2%. However, interest rate-sensitive real estate and utilities fell, weighed down by rising yields.
Stocks expected to do well in Trump's second term posted big gains, with Trump Media & Technology Group up 16%. Tesla soared 13.4% after CEO Elon Musk endorsed Trump on the campaign trail.
While renewable energy stocks fell, crypto companies, energy companies, and prison operators also saw big gains.
The Dow Jones Industrial Average .DJI rose 1,190 points, or 2.82%, to 43,412.81. The S&P 500 rose 93.73 points, or 1.62%, to 5,876.49, and the Nasdaq Composite Index rose 312.049 points, or 1.69%, to 18,751.22.
Market focus has shifted to whether Republicans will be able to maintain their majority in the House of Representatives after winning the Senate majority.
