U.S. financial markets soared on Wednesday as major media outlets declared Donald Trump the winner of the 2024 presidential election, sparking investor optimism for pro-growth policies.
The Dow Jones Industrial Average rallied more than 1,430 points, marking a 3.4% single-day surge—its largest since November 2022. The S&P 500 and Nasdaq followed suit, each hitting record highs with over 2% gains, while the Russell 2000, which tracks smaller U.S.-focused companies, surged 4.7% on expectations of economic policies favoring domestic businesses.
Market analysts attributed the spike to Trump’s expected tax cuts and deregulatory stance, with financial and tech stocks performing particularly well.
Bitcoin also reached an all-time high of $75,000 per coin as investors anticipated a crypto-friendly regulatory environment under Trump’s administration.
Tesla shares jumped nearly 14%, fueled in part by CEO Elon Musk’s support for the president-elect.
David Bahnsen, CIO at The Bahnsen Group, noted that investor sentiment is strongly pro-deregulation, projecting an uptick in M&A activity.
Edward Jones strategist Angelo Kourkafas added that the clarity of the election outcome contributed to the stock rally, though he cautioned that initial post-election gains often moderate in the following days.
Image credit: Sophie Backes
