Former U.S. President and Republican presidential candidate Donald Trum is shown on a screen during the Nevada Republican Election Watch Party in Las Vegas, Nevada on November 6, 2024. Participants cheered for his speech.
Rhonda Churchill | AFP | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Trump will become the 47th President of the United States
republican presidential candidate According to NBC News, Donald Trump will be elected as the 47th President of the United States after defeating Democratic candidate Kamala Harris. If Trump follows through on his campaign promises, he will enact tax cuts, mass deportations and impose steep tariffs on imported products.
Multiple records closed
Against the backdrop of broad market gains, all three major U.S. stock indexes rose sharply on Wednesday, hitting record highs. this 10-Year Treasury Bond Yields jumped 14 basis points to 4.43% as investors anticipated higher U.S. government spending and a possible surge in inflation. European Stoke 600 The index fell 0.54%.
Tesla shares soar, solar stocks fall
Tesla The stock price soared 14.8% Investors are betting that Trump’s victory in the White House will benefit Tesla CEO Musk, a key backer. However, solar stocks fell on concerns that Trump would slash solar tax credits.
The Cryptocurrency Ride
Bitcoin It surged 10% overnight, hitting $76,493.86, a new cryptocurrency high. Stocks in cryptocurrency companies, e.g. Coin Library and micro strategy also popped up. Cryptocurrencies are booming as Trump markets himself as a pro-crypto candidate.
(PRO) Why Small Caps Are Soaring
this Russell 2000 It surged 5.84%, its best single-day performance in more than two years. While Trump’s proposed corporate tax rate cuts are widely expected to boost the overall stock market, small-cap companies in particular will also benefit from a host of other factors related to the Trump presidency.
bottom line
Donald Trump’s victory in the US presidential election provided a boost to risk assets.
Marc Pinto, head of Americas equities at Janus Henderson Investors, wrote in a note that he was optimistic about “lower corporate tax rates, deregulation and industrial policies that favor domestic growth.” The support could boost the economy and, in turn, the stock market.
Investors’ expectations on these fronts have boosted stocks. In short, the Trump rally has begun.
Bank stocks rallied sharply, with many posting double-digit gains, amid loosening regulations in the sector.
So-called traditional carmaker stocks, e.g. General Motors and FordTrump’s vow to lower vehicle emissions standards and eliminate incentives for electric vehicles has given their engines a boost.
That’s bad for electric car companies, but Tesla is an exception. Chief Executive Musk has been a staunch supporter of Trump, and investors appear to believe that relationship could be an asset to the company.
Trump’s victory pushed major U.S. stock indexes to new highs. this S&P 500 Index up 2.53% Dow Jones Industrial Average Soared 3.57% Nasdaq Index up 2.95%.
To be sure, yesterday’s wild rally could have been as much a relief rally as it was a Trump rally.
“A decisive win removes the suspense of an uncertain or contested outcome,” said Angelo Kulcafas, senior investment strategist at Edward Jones. “That in itself removes some uncertainty and helps us in the market. See the strong reaction.
Therefore, as sentiment and expectations fade, the rally is likely to fade as well.
In addition, Ma Yongyu, chief investment officer of Bank of Montreal Wealth Management, pointed out that rising Treasury yields and potential widespread tariffs have cast a shadow on the market.
For now, however, Trump’s rally is lighting up the market.
—CNBC’s Jesse Pound, Scott Schnipper, Alex Harring, Yun Li and Jesse Pound contributed to this report.
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