Stocks surged sharply on Wednesday, with major indices reaching all-time highs after Donald Trump won the 2024 presidential election.
The Dow Jones Industrial Average soared 1,508.05 points, or 3.57 per cent, closing at a record 43,729.93. This marked the largest one-day point gain for the Dow since November 2022.
The S&P 500 also hit a new peak, jumping 2.53 per cent to 5,929.04, while the Nasdaq Composite climbed 2.95 per cent to a record high of 18,983.47.
Stocks of companies seen as potential beneficiaries of a Trump presidency surged, with Tesla—backed by Trump supporter Elon Musk—rising more than 14 per cent. Bank stocks also saw significant gains, with JPMorgan Chase up 11.5 per cent and Wells Fargo jumping 13 per cent.
The Russell 2000, which tracks small-cap stocks, soared 5.84 per cent to hit a 52-week high. Small companies, which tend to be more domestically focused and cyclical, are expected to benefit disproportionately from Trump’s tax cuts and protectionist policies.
Bitcoin, benefiting from the prospect of relaxed regulation, soared to a record high, surpassing $76,000. The US dollar index also rose to its highest level since July, driven by expectations that Trump’s proposed tariffs could strengthen the greenback. Meanwhile, the 10-year Treasury yield jumped to around 4.43 per cent, fueled by speculation that Trump’s tax cuts and stimulus plans could spark economic growth, though at the cost of a larger fiscal deficit and potential inflation.
Shares of Coinbase jumped more than 26 per cent, positioning the crypto exchange for its best day since its direct listing in April 2021, when it saw a 31 per cent gain from its reference price on its debut as a publicly traded company.
Futures
The SPI futures are pointing to a 0.4 per cent gain.
Currency
One Australian dollar at 8.35am was buying 65.72 US cents.
Commodities
Gold has fallen 2.91 per cent. Silver has dropped 4.56 per cent. Copper has lost 5.34 per cent. Oil has fallen 0.24 per cent.
Figures around the globe
European markets closed lower. London’s FTSE lost 0.07 per cent, Frankfurt fell 1.13 per cent, and Paris closed 0.51 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei gained 2.61 per cent , while Hong Kong’s Hang Seng dropped 2.23 per cent and China’s Shanghai Composite shed 0.09 per cent.
Yesterday, the Australian share market closed 0.83 per cent higher at 8199.55.
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Washington H Soul Pattinson & Co Ltd (ASX:SOL)
Sources: Bloomberg, FactSet, IRESS, CNBC, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
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