US Stocks, Dollar Rally as Trump Wins US Election: Markets Wrap


(Bloomberg) — Donald Trump’s victory in the US presidential election unleashed a shockwave in global markets as traders prepared for dramatic policy and economic change under the new administration.

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S&P 500 futures climbed 1.9%, the dollar had its biggest gain since 2020 and Bitcoin spiked to a record. Tesla Inc., led by Trump’s biggest backer Elon Musk, surged 15% in premarket trading. US bonds tumbled on expectations of faster inflation, with 30-year yields jumping 20 basis points to 4.65%.

From London to Shanghai — investors around the world grappled with the far-reaching effects of a Trump presidency, which is expected to bring steep tariffs on imported products, worsen trade tensions with China and increase pressure on Europe to ramp up defense spending. The Mexican peso fell the most in three months and the euro led losses among Group-of-10 currencies.

“We’ve been talking about this Trump trade for a while. The fairly aggressive market reaction shows that investors didn’t know what to put on, and now they know,” Marvin Loh, senior macro strategist at State Street Global Markets, told Bloomberg TV. “A lot of us will be asking is which ones potentially have either a lot more to move or really does not yet reflect the type of administration.”

Equities also reflected expectations that Trump would loosen financial regulation, embrace crypto and support fossil fuel producers. JPMorgan Chase & Co. and Bank of America Corp. shares advanced in early trading. Tilray Brands Inc., a cannabis company, sank 10% after Florida voters rejected a ballot measure to legalize recreational marijuana.

Wall Street saw the potential for outsized moves.

Goldman Sachs Group Inc.’s trading desk said a Republican sweep may push the S&P 500 up by 3%, while moves would be half as much in the event of a divided government. A Morgan Stanley note said risk-taking appetite may dip in the event of a Republican sweep as fiscal concerns fuel yields, but if bond markets take it in their stride the likes of growth-sensitive cyclical stocks would rise.

Here’s What Wall Street Says:

We have a new investment regime most likely for the next four years or at least the next two years until the next midterm election. This means you can commit to some of those trades. The reason why small caps are rallying is because they are more sensitive to the republican majority and that is helping sentiment, domestic orientation and potential for lower tax.



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