Le parquet du New York Stock Exchange ( GETTY IMAGES NORTH AMERICA / SPENCER PLATT )
The New York Stock Exchange opened sharply higher on Wednesday, driven by investors satisfied with Donald Trump's victory in the American presidential election.
Around 2:45 p.m. GMT, the Dow Jones soared by 3.08%, the Nasdaq index by 2.12% and the broader S&P 500 index by 2.00%.
From the opening, Dow Jones and S&P 500 set new session records.
“From a market point of view, it's quite easy. Everything is clear,” commented Karl Haeling of LBBW. “Bonds and commodities are falling, while stocks and the dollar are taking off because of the election result.”
Even before the publication of complete results, Donald Trump was already assured of returning to the White House, following a final vote.
The former head of state won most of the key states, in particular Georgia, Pennsylvania and Wisconsin.
“The fact that the Republican victory is so marked, at least for the presidency and the Senate, means that we will not have a prolonged period of uncertainty. (…) This is a big plus” from the point of view of the markets, explained Mr. Haeling.
The partial results did not yet make it possible to determine which party would take control of the House of Representatives.
Investors also saw “the potential for tax cuts, less regulation and a favorable climate for businesses”, added the analyst.
Considered one of the first beneficiaries of this new environment, the technology sector was celebrating.
Major semiconductor players such as Nvidia (+3.11%), Broadcom (+2.88%) and Texas Instruments (+3.25%) were clearly in the green, as were Alphabet and Microsoft.
But their progress remained modest compared to that of Tesla (+13.20%), whose boss, Elon Musk, campaigned for Donald Trump and donated millions of dollars to promote the Republican candidate.
Donald Trump has indicated that he intends to entrust Elon Musk with a major role within his future government, dedicated to reducing public spending.
Another potential beneficiary of less regulation is financial companies, such as JPMorgan Chase (+8.78%) or Goldman Sachs (+10.88%).
But the momentum went well beyond, supporting in particular the industry, like 3M (+3.52%), Dow (+1.40%) or Honeywell (+2.55%).
Conversely, the bond market was battered. The yield on 10-year US government bonds rose to 4.48%, a high in more than four months.
“This is a risk appetite shift of spectacular magnitude,” summarized Patrick O’Hare of Briefing.com in a note.
Unsurprisingly, Donald Trump's media group, Trump Media and Technology Group, catapulted (+17.32%).
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