Stocks rallied sharply on Wednesday, with major benchmarks hitting record highs, as Donald Trump won the 2024 presidential election.
The Dow Jones Industrial Average surged 1,508.05 points, or 3.57%, to a record close of 43,729.93. The last time the blue-chip Dow jumped more than 1,000 points in a single day was in November 2022.
The S&P 500 also hit an all-time high, popping 2.53% to 5,929.04. The Nasdaq Composite climbed 2.95% to a record of its own of 18,983.47.
NBC News projects that Trump will defeat his Democratic rival, Kamala Harris, after winning at least 291 Electoral College votes, including key swing states of Pennsylvania, North Carolina and Georgia.
Investments seen as beneficiaries under a Trump presidency erupted as the former president appeared set for victory. Tesla
, whose CEO Elon Musk is a prominent backer of Trump, saw shares surge more than 14%. Bank shares got a boost with JPMorgan Chase
climbing 11.5% and Wells Fargo
jumping 13%.
The small-cap benchmark Russell 2000
surged 5.84%, hitting a 52-week high. Small companies, which are more domestic-oriented and cyclical, are believed to enjoy outsized benefits from Trump’s tax cuts and protectionist policies.
“Trump is viewed as supporting lower corporate tax rates, deregulation, and industrial policies that favor domestic growth, all of which could provide more stimulus to the U.S. economy and benefit risk assets. … During the 2016 election, the S&P 500 Index gained nearly 5% from the day before the presidential election through the end of the year in what became known as the Trump rally. We expect a similar trend could play out this time around, too,” Marc Pinto, head of Americas equities at Janus Henderson Investors, said in a note.
Bitcoin, which could benefit from relaxed regulation, soared to an all-time high and topped $76,000. The dollar index climbed to its highest level since July on the belief that Trump’s proposed tariffs against major U.S. trading partners would boost the greenback. The 10-year Treasury yield jumped to around 4.43% on speculation Trump’s proposed tax cuts and other spending plans would spark economic growth, but also widen the fiscal deficit and reignite inflation.
Shares of Trump Media & Technology Group
, a social media company closely tied to Trump, finished up 5.9% after a volatile trading session.
In the race for Congress, NBC News projects that Republicans will win back the Senate. Leading up to election, Democrats were expected to take control of the House, but so far it was still up for grabs, leaving open the possibility of a so-called red sweep. A Republican wave could lead to more drastic spending changes or a big revamp of tax policy.
“It looks like a Trump presidential win but also a win for Republicans in House and Senate. If that happens, you’re going to see the U.S. economy really taking off,” Mark Mobius, Mobius Emerging Opportunities Fund chairman, told CNBC early Wednesday.
