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The S&P 500 and Nasdaq 100 futures also saw significant gains, rising 2.4% and 1.8%, respectively.
Donald Trump staged one of the most remarkable comebacks in the history of US politics.
In the wake of Donald Trump’s victory in the 2024 U.S. presidential election, stocks surged on Wednesday, poised for a historic rally. Market sentiment was optimistic as investors anticipated pro-business policies that could boost economic growth under Trump’s administration.
Trump’s victories in key swing states, including Pennsylvania, North Carolina, and Georgia, secured his path to the White House. The news bolstered market confidence, fueling a rally across several sectors.
Dow Futures Surge Over 1,200 Points
According to a CNBC report, futures on the Dow Jones Industrial Average shot up by 1,254 points, marking a 2.9% increase. This jump echoed the last major spike in November 2022, highlighting investor enthusiasm.
The S&P 500 and Nasdaq 100 futures also saw significant gains, rising 2.4% and 1.8%, respectively.
Trump’s Victory Projection Shakes Markets
NBC News projected that Trump won 276 Electoral College votes, defeating his Democratic rival, Kamala Harris.
Tesla and Bank Stocks Lead the Rally
Companies perceived as Trump administration beneficiaries saw notable gains. Tesla surged 13% in premarket trading, with CEO Elon Musk as a vocal supporter of Trump’s policies.
Bank Stocks
Bank stocks also rallied, with shares of JPMorgan, Bank of America, and Wells Fargo all jumping over 6%.
Russell 2000 Futures Jump 6%
The small-cap Russell 2000 index, seen as more sensitive to U.S. economic policies, surged 6% in futures trading. Analysts attribute this to Trump’s promises of business-friendly tax cuts and regulatory policies that could spur domestic growth, benefiting smaller, U.S.-focused companies.
Treasury Yields Rise Amid Fiscal Stimulus Speculation
The 10-year Treasury yield rose to 4.43% as investors anticipated Trump’s economic plans, which include tax cuts and increased spending. However, this spike also raised concerns about inflation and fiscal deficit expansion, indicating potential future market volatility.
Trump Media & Technology Group Soars 50%
Shares of Trump Media & Technology Group, a social media company tied to Trump, surged 50% in premarket trading. The stock’s meteoric rise reflects investor optimism regarding Trump’s influence in the tech and media spaces, signaling growth opportunities under his leadership.
Stock Market Gains Momentum Before Election Results
In a show of early confidence, the S&P 500 gained 1.2% on Tuesday, marking a 21% increase for 2024.
Investors rallied behind expectations of stable economic policy and growth-friendly conditions, setting a promising tone for market performance under Trump’s presidency.
