RTWed, 06 Nov 2024 19:55 UTC
© J. David Ake/Getty Images
The US stock market and other financial assets surged on Wednesday after media outlets started declaring victory for Donald Trump in the presidential election.
Kamala Harris has called Donald Trump to "congratulate him on winning the 2024 presidential election," a senior aide to the vice president has told NBC News,
marking what amounts to a formal concession of the race.On Wednesday, the
Dow Jones Industrial Average jumped more than 1,430 points, or 3.4%, in a single day record surge for the blue-chip index since November 2022
. The broader
S&P 500 and tech-heavy Nasdaq also hit record highs, both rising up by over 2%.
The Russell 2000, which tracks smaller companies most exposed to the US economy,
surged 4.7% on expectations of Trump's tax cuts and protectionist policies.
The 10-year Treasury yield bounced to 4.43% while the dollar index jumped 1.7% to 105.13.
David Bahnsen, chief investment officer at The Bahnsen Group, was quoted as saying by CNBC:
"For now, investor sentiment is pro-growth, pro-deregulation, and pro-markets, as seen in the overnight market action. There is also an assumption that M&A activity will pick up and that more tax cuts are coming or the existing ones will be extended. This creates a strong backdrop for stocks."
The cryptocurrency industry is also anticipating more market-friendly policies and regulations being eased after Trump embraced digital assets during his campaign. The flagship crypto,
Bitcoin, shot up to an all-time high of $75,000 per coin early on Wednesday.
The new president-elect has promised to make the US the "crypto capital of the planet."Tesla, whose CEO Elon Musk is a staunch Trump supporter,
also saw shares soar almost 14%.Meanwhile, Angelo Kourkafas, senior investment strategist at Edward Jones, told CNBC that Wednesday's surge in stocks is not just a reaction to a Trump victory but
also a relief that the election outcome is clear.
"A decisive win removes the overhang of an unclear or a contested outcome. And that by itself clears some of the uncertainty and is helping that strong reaction we are seeing in the markets."
Kourkafas noted that the rally could lose some steam in the coming days: "We tend historically to see markets overreact the day after the election..."
Comment: Wall Street wasn't the only
recent positive financial event:
The Russian stock market rallied on Wednesday morning amid reports of Donald Trump's likely victory in the US presidential election.
Shares in all major Russian companies have been on the rise since preliminary results of the US election started to appear. Stock in state energy giant Gazprom grew by 5% in morning trading, while Lukoil shares jumped by 2.8%. Shares in oil major Rosneft were up by 3%, while Tatneft saw a 4.6% increase. Shares in mining giant Norilsk Nickel rose by 3.6%, while aluminum major Rusal saw its stock jump by 3.4%. The country's largest lender, Sber, saw a gain of 3.6%. Diamond major Alrosa stock surged by 5.3%, while Russia's national airline, Aeroflot, saw its stock spike by 5.9%.
The country's top tech player Yandex, often referred to as 'Russia's Google', saw its stock rise by 2.8%. Major retailers MVideo and Ozon also saw shares surge by over 6%.
The ruble-denominated Moscow Exchange (MOEX) index was up 3.4% as of 09:00 GMT, while the dollar-denominated RTS index rose by 3.3%.
Analysts briefed by RBK said the markets had rallied amid investors' hopes that a victory for Trump would be a positive development for Russia, as he has repeatedly pledged to end to the Ukraine conflict and de-escalate geopolitical tensions.
Mikhail Zeltser, an expert at BCS World of Investments, predicted:
"For domestic market participants, the possible change of power in the US is associated with timid hopes for a change in rhetoric and approaches."
Aleksey Antonov, head of Investment Consulting at Alor Broker, noted:
"It is believed that Donald Trump's victory in [the presidential election] is the lesser evil for Russia, and in such a scenario, our stock market could grow significantly."
Some analysts said they expect Trump's likely victory to boost growth in stock prices of companies whose business suffered the most as a result of Ukraine-related Western sanctions on Russia, such as Gazprom, Aeroflot, and some exporters.
Other experts warned that Trump's apparent victory may pose new risks for Russia amid its policy of abandoning the US dollar in trade, which the Republican has criticized. Some also fear Trump's protectionist position may lead the US towards new trade wars, including against one of Russia's major international partners, China.
Not left out of the rally:
Tesla stock also soars in post-election rally:
Tesla stock has extended its post-election rally, shooting up almost 8% on Monday after surging nearly 30% last week following Republican Donald Trump's victory in the US presidential election.
Tesla's post-election surge also saw it topping $1 trillion in market value for the first time in two years. The latest gains make Tesla worth more than the next 15 biggest carmakers combined, according to Forbes. Musk's personal wealth has also rocketed past $300 billion since Trump's win.
Musk has long been warning that the US is spiraling towards bankruptcy, urging "a radical reduction of government expenditures" and asserting that spending has been stoking inflation.
According to the Financial Times, any role in advising Trump will be structured to allow him to keep control of his companies Tesla, X, SpaceX, xAI and Neuralink. He aims to "exert power by installing longtime deputies, engineering experts, financial backers and ideological partners at government agencies," the Times wrote.
Musk gains billions...
Tesla, which dominates sales of EVs in the US with a market share of 48.9%, is expected to make sharp gains under a Trump administration, given the Republican's plans for extensive tariffs on imports of Chinese cars.
Wedbush analyst Dan Ives, in a note to investors, said:
"Tesla has the scale and scope that is unmatched. This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players."
Amazon owner Jeff Bezos saw his net worth surge $7 billion to $223.5 billion, maintaining his position as the world's second-wealthiest person behind Musk.
Crypto magnates also made out well. The net worth of Brian Armstrong, co-founder and CEO of crypto exchange Coinbase, soared by $2.6 to $11 billion, according to Bloomberg, while Binance crypto exchange founder Changpeng Zhao added $12.1 billion following the election, boosting his fortune to $52.7 billion.
I know it's not true, just looks that way.