Futures on the S&P 500 Index hit a record high as part of a large, broad-based rally on Wednesday, after Republican Donald Trump claimed victory in the U.S. presidential election.
Fox News announced that he had defeated Democratic candidate Kamala Harris, although other news outlets have yet to announce Mr. Trump's victory.
As the election results began to trickle in, so-called “Trump” trades rallied, U.S. Treasury yields jumped, bitcoin hit a record high and the dollar appreciated. [US/]
“Markets absolutely need certainty,” said David Allen, portfolio manager at the Plato Global Alpha Fund, adding that a Trump victory was likely “priced in at the margin.”
As of 3:35 a.m. ET, the Dow E-minis was up 986 points, or 2.33%, the S&P 500 E-minis was up 117.25 points, or 2.02%, and the Nasdaq 100 E-minis was up 117.25 points, or 2.02%, and the Nasdaq 100 E-minis was up 117.25 points, or 2.02%. -minis was up 337.25 points, or 1.66%.
Futures contracts tracking the small-cap Russell 2000 rose 5.1% to the highest levels since the start of 2022, with the most domestically focused stocks expected to benefit from a boost more flexible regulatory and fiscal rules and be less exposed to possible customs duties on imports.
The Republican Party also took control of the U.S. Senate and made early gains in the battle to retain control of the House of Representatives.
A “clean sweep,” in which a single party would take the presidency, the House of Representatives and the Senate, would make it easier for Mr. Trump to pass the laws he wants.
“I think Trump 2.0 will be different from Trump 1.0…I expect him to quickly pass a lot of important legislation in the first 100 days, so hold on tight,” Mr. Allen.
Analysts say Trump's plans for immigration restrictions, tax cuts and steep tariffs, if passed, will put upward pressure on inflation and bond yields , while businesses could benefit from its tax and regulatory policies.
Tesla's Frankfurt-listed shares rose 13% as investors bet on the stock as major shareholder Elon Musk supported Mr Trump throughout his election campaign.
