ALBAWABA - Following Donald Trump's swift return to the presidency in the 2024 election, stock markets in the United States jumped to new highs on Wednesday as The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all closed at record levels, according to Reuters.
As investors expect pro-growth policies under Trump's leadership, the Dow closed the day up 3.57%, while the S&P 500 and Nasdaq both wrapped up the day 2.53% and 2.95% in gains, respectively.
The election of Donald Trump revived the phrase "Trump trades," which refers to industries that are projected to gain from the focus that his government potentially places on deregulation, tax reduction, and strengthening domestic manufacturing.
As banks reacted favorably to the possibility of less regulatory constraints, banking stocks were among the largest winners, with the S&P 500 financial sector up 6.16%. As a result of their local emphasis and less exposure to international tariffs, small-cap stocks in the Russell 2000 index also jumped 5.84% to a three-year high, Reuters reports.
In addition to rising more than 1% versus the euro and more than 3% against the Mexican peso, the dollar surged 1.5% to 154.38 yen, its best level since July, while Bitcoin surpassed its previous peak of $73,797.98 in March, rising $6,000 to a record $75,371.69, according to AFP.
During his campaign, Trump has promised to put tech conglomerate Elon Musk in charge of a comprehensive audit of government waste and to turn the US into the “Bitcoin and cryptocurrency capital of the world.”
While victory is not yet official, Trump claimed it in a speech in Florida, saying: “We are going to help our country heal... We have a country that needs help and it needs help very badly,” AFP reports.
