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Highlights
- U.S. stocks reach record highs with major indices surging.
- Tesla, JPMorgan Chase, and Wells Fargo see significant gains.
- Bitcoin soars past $76,000 amid expectations of relaxed regulation.
U.S. stock markets experienced a strong rally on Wednesday, with major indices reaching unprecedented levels following Donald Trump's victory in the 2024 presidential election. Investor sentiment seemed bolstered by expectations around Trump’s economic policies, which include potential tax cuts, tariffs, and relaxed regulations. These factors propelled a range of stocks, from large-cap tech firms to financial institutions, resulting in a bullish market environment.
The Dow Jones Industrial Average experienced a substantial boost, gaining 1,508.05 points, marking a 3.57% increase and closing at a record-breaking 43,729.93. This represented the most significant one-day point increase for the Dow since November 2022. Meanwhile, the S&P 500 rose by 2.53%, closing at a new high of 5,929.04. The Nasdaq Composite Index also surged, climbing 2.95% to a peak of 18,983.47, underscoring the widespread optimism across various sectors.
Among the top performers were stocks expected to benefit under Trump’s administration. TSX:TSLA (Tesla), led by Elon Musk, who has been a vocal Trump supporter, saw its shares surge over 14%. The financial sector also demonstrated strong performance, with TSX:JPM (JPMorgan Chase) up by 11.5% and TSX:WFC (Wells Fargo) jumping 13%. Analysts attributed these gains to Trump’s anticipated policies that could be favorable to financial institutions and large corporations.
The Russell 2000 index, which tracks small-cap stocks, rose 5.84% to a 52-week high. Small-cap companies, generally more focused on domestic markets, are seen as well-positioned to benefit from Trump's protectionist policies and potential tax cuts. These economic measures may provide advantages for companies with a primary focus on U.S.-based operations.
In the cryptocurrency sphere, Bitcoin saw a dramatic rise, reaching an all-time high of over $76,000. The cryptocurrency benefited from the expectation of relaxed regulations under the Trump administration. TSX:COIN (Coinbase) shares surged more than 26%, marking its best day since its debut as a public company in April 2021.
In the broader economic landscape, the U.S. dollar index rose to its highest point since July, driven by expectations of stronger demand for U.S. assets due to Trump's tariff proposals. The 10-year Treasury yield also increased to around 4.43%, influenced by speculations that Trump’s stimulus plans could foster economic growth, despite concerns about a growing fiscal deficit.
Global markets showed mixed results. European markets experienced slight declines, with London’s FTSE dropping 0.07%, Frankfurt down 1.13%, and Paris losing 0.51%. Meanwhile, in Asia, Tokyo’s Nikkei rose 2.61%, while Hong Kong’s Hang Seng and China’s Shanghai Composite both saw losses.
On the commodities front, prices dipped as gold fell 2.91%, silver dropped 4.56%, and copper decreased by 5.34%.
