Stocks across the board skyrocketed on Wednesday following Donald Trump’s victory in the presidential election, with major milestones being set as stocks already traded at near record levels. The Dow Jones Industrial Average rose as much as 3.5%, the S&P 500 soared 2.3%, and the Nasdaq rose 2.7% to record highs. The Russell 2000, which tracks smaller companies, also saw a 5% rally, marking its best day since November 2023.
The surge in stocks was bolstered by Trump’s vow for less regulation, leading to gains in sectors like financials, energy, and industrials. Notable stocks hitting all-time highs included Goldman Sachs and Nvidia, with companies like Bank of America and Tesla also reaching their highest share prices in over a year. Big gainers included Tesla, Wells Fargo, Goldman Sachs, Morgan Stanley, and JPMorgan Chase, with shares of each company rising at least 11%.
Several companies hit their highest share prices in at least 12 months on Wednesday, with all-time highs seen in Amazon, American Express, Bank of America, Walmart, and others. Among the biggest net worth winners amid the stock market surge were Tesla CEO Elon Musk, Oracle chairman Larry Ellison, Berkshire Hathaway CEO Warren Buffett, Amazon founder Jeff Bezos, and Nvidia CEO Jensen Huang.
Analysts pointed to several factors driving the rally in U.S. equity indexes following the election, including anticipation of stronger domestic growth, increased mergers and acquisitions activity, an extension to personal tax cuts, and hopes of lower corporate taxes. The prospect of a clear-cut election outcome was also identified as a catalyst for the market surge. Other notable developments in financial markets tied to the election included bitcoin hitting its highest price ever, the dollar staging its highest single-day jump since 2016, and 10-year U.S. government bond yields rising to a four-month high.
Overall, the reaction in financial markets to Donald Trump’s victory in the presidential election was overwhelmingly positive, with stocks reaching record highs and major milestones being set across the board. Investors reacted favorably to Trump’s promises of less regulation, leading to gains in key sectors like financials, energy, and industrials. Notable stocks hitting all-time highs included Goldman Sachs and Nvidia, while prominent names like Bank of America and Tesla also saw their share prices soar. The surge in stocks was accompanied by gains in bitcoin, a jump in the dollar, and rising bond yields, reflecting optimism about the economic outlook following the election.