President-elect Donald Trump, in his victory speech on Wednesday morning, vowed to usher in America’s “golden age.”
Investors seemed to respond positively as the Dow soared over 1,320 points, surging more than 3%. Meanwhile, the S&P 500 increased by 1.9%, with the Nasdaq rising by 2.2%.
This surge marked the first instance of the Dow jumping over 1,000 points in a day since November 2022, according to CNN.
While some believe Trump’s win provided investors with reassurance, others speculate that his promises of deregulation and tax reforms are stirring excitement.
AgentSmyth COO Michael Block reasoned that there is a “huge perception of [a] business friendly, tax-friendly regime coming into place,” with Republicans securing the Senate.
Bitcoin also saw a dramatic increase, skyrocketing from below $70,000 to over $75,000 overnight amidst Trump’s victory.
His campaign’s pro-crypto stance gave this digital currency a significant boost, as he assured investors in July that the nation would become the “crypto capital of the planet.”
The U.S. dollar strengthened against major currencies like the euro, peso, yen, and yuan, marking its biggest rise since March 2020.
While American markets flourished, European stocks faced challenges. CNBC noted that the pan-European Stoxx 600 fell by 0.68% by 4 p.m. in London.
Analysts anticipate a decline in the euro, possibly dropping below $1, and expect China’s yuan to continue its downward trend, similar to its trajectory between 2018 and 2020.
The Swiss franc, however, may find support due to Switzerland’s valuable exports, which offer some protection from the tariffs Trump plans to impose on trade.
Domestically, The New York Times reported a sharp increase in U.S. government bond yields, with Treasury 10-year yields jumping 17 basis points to reach 4.46%.
