Dow slides for a seventh straight day for longest losing streak since 2020
Market responding to trumps election?
you may not have noticed but we were talking about drones daaaa
The dollar rose by its steepest margin since 2016 and the benchmark U.S. Treasury yield rose Wednesday by its widest level since April.
www.forbes.com
November 5th, Former President Donald Trump won the 2024 election. Many people attribute his victory to Americans’ dissatisfaction with the economy. According to exit polls, nearly half (45%) of voters feel worse off financially than during Trump’s previous term.
During Trump’s campaign, he promised to cut taxes and cultivate a more business-friendly environment, spurring optimism for the economy. He also vowed to end the “inflation nightmare” and tackle illegal immigration.
Below, we’ll examine the immediate impact of Trump’s victory on the stock market and various currencies. We’ll also explore how his proposed policies may shape the broader U.S. economy over the coming years.
The Stock Market’s Reaction to Donald Trump’s Election Win
Stocks surged to record levels on Wednesday, November 6th, after confirming Trump’s victory.
The Dow Jones Industrial Average rose over 1,500 points, or 3.6%, marking the first time the blue-chip index has gained more than 1,000 points in a single day since November 2022.
The S&P 500 increased by 146 points, or 2.51%, while the Nasdaq Composite increased by nearly 3%.
The Russell 2000 index, which monitors small-cap stocks, increased by nearly 6%.
The S&P 500 bank index, a benchmark for financial stock, climbed nearly 11%.
Robinhood Markets saw its most significant overnight trading session, with 11 times higher than average trading volumes.
Outspoken Trump supporter Elon Musk’s Tesla (TSLA) stock price shot up 14.75%.
This spike in stock market activity was likely caused by the resolution of the election’s uncertainty. According to John Bai, Northeastern professor of finance, “The number one rule in the stock market is that the stock market doesn’t like uncertainty. But it does like the resolution of uncertainty.”
Trump’s swift victory allows companies and investors to make their future spending and investment decisions more confidently. His proposed policies also give many investors the perception that tax-friendly, business-friendly policies are on the horizon.
Cryptocurrency
Cryptocurrency enthusiasts have shown much support for Trump, who recently posted on X that he plans to make the U.S. the “crypto capital of the planet.” Trump’s recent win sent ripples of optimism throughout the cryptocurrency space. Within 24 hours, Bitcoin jumped from $69,492 to an all-time high of $75,395.
Crypto investors are excited about a second Trump term for the following reasons:
Trump is considered a “pro-crypto” candidate – In July of 2024, Trump headlined the largest bitcoin conference of the year in Nashville, Tennessee. There, he promised to establish a federal Bitcoin reserve. “For too long, our government has violated the cardinal rule that every Bitcoiner knows by heart: Never sell your Bitcoin,” Trump said. He also expressed interest in bringing more Bitcoin mining operations into the country.
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