Donald Trump’s projected victory in the US election has sparked a sharp rally in stock markets. Since the first results were known, Dow Jones, S&P 500 and Nasdaq futures saw significant rise. Therefore, the shares of different important companies, on which these indices are based, also had upward movements for the most part.
The Dow, for example, rose almost 1,400 points, or 3.2%taking the stock market to record levels before the trading day began. Meanwhile, The S&P 500 and the Nasdaq also showed gains of more than 2%. These movements reflect investors’ expectations about the impact that a possible return of Trump to the White House would have.
According to Solita Marcelli, chief investment officer at UBS Global Wealth Management, The S&P 500 is expected to rise to 6,600 points by the end of 2025as commented on CBS News. This would imply a return of around 15% from current levels, driven by moderate economic growth in the United States, lower interest rates and continued structural support from artificial intelligence.
Besides, a possible reduction in corporate taxes and deregulation in the energy and finance sectors under a Trump administration they could add more momentum to the market.
One sector that has experienced a notable boom is cryptocurrencies. The price of Bitcoin, for example, rose almost 8%, reaching a record high of $75,345 before retreating slightly to around $73,500.. This responds to Trump’s promises during his campaign to make the United States the “cryptocurrency capital of the world” and create a “strategic bitcoin reserve.”
“Bitcoin is the one asset that was always going to skyrocket if Trump returned to the White House,” Russ Mold, chief investment officer at AJ Bell, a British online investment platform, told CBS News.
The actions of the cryptocurrency exchange platform Coinbase rose 18% and almost all cryptocurrencies rose, including Dogecoin, which rose 17%.
The impact of Trump’s victory has also been reflected in the stock market related to his business empire. Shares of Trump Media & Technology Group, the company behind the social network Truth Social, rose 38%, reaching $46.80. This benefits the personal finances of Trump, who owns a stake in the company valued at more than $5 billion.
At the sector level, banks were one of the main beneficiaries. With the expectation that a Trump administration could relax financial regulations, Shares of large institutions like JPMorgan and Capital One rose significantly. JPMorgan, for example, advanced 7%, while Capital One rose 11.3%.
Besides, teslawhich has the support of Trump and his CEO Elon Musk, experienced an increase of almost 13%.
However, analysts also warn that some of Trump’s proposed policies, such as imposing tariffs of up to 20% on foreign goods and up to 60% on Chinese imports, could have long-term adverse effects. These measures could stoke inflation, slow economic growth and increase public debt.
As to renewable energy sectorssuch as First Solar and Enphase, which benefited from the Biden administration’s environmental policies, were negatively affected by the possibility of Trump reversing those initiatives.
In short, Trump’s victory has generated a significant change in the financial markets. Investors are optimistic about the prospect of faster economic growth and more business-friendly policies. However, not everything is positive, as protectionist proposals and the possible increase in inflation could generate long-term uncertainty.
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