Stock markets were broadly rising higher Wednesday amid certainty over Donald Trump’s victory in the United States’ presidential election, though experts warned there’s no guarantee a “Trump bump” will last.
U.S. stocks surged on the news Wednesday morning that Trump had claimed a second term.
The Dow Jones industrial average gained just over 1,500 points by markets’ close. The S&P 500 was 2.5 per cent higher on the day and the Canadian benchmark S&P/TSX composite index was up 228 points at 24,608.41.
Bond yields were also rising Wednesday, with the 10-year U.S. Treasury yield up more than 15 basis points and long-term Government of Canada bonds on an upswing as well.
The stock market charge was led by U.S. banks such as Goldman Sachs and JP Morgan Chase. Allan Small, senior investment adviser of his own financial group at iA Private Wealth, tells Global News the surge is tied to hopes the victorious Republican candidate will enact a deregulation agenda when he takes office.
Cryptocurrencies also enjoyed a boom — Trump had promised to make the U.S. the “crypto capital of the planet” during the campaign — that saw bitcoin rising to a new high on Wednesday.
Select stocks gave a varied performance based on their links to Trump.
Trump Media & Technology Group, majority-owned by Trump, was up about six per cent before the end of the day. Investors overlooked the company’s latest quarterly results that showed the Truth Social parent’s revenue was just US$1 million.
Ally Elon Musk’s Tesla surged 14.75 per cent in trading Wednesday, while Small points to Trump’s previous statements criticizing Meta CEO Mark Zuckerberg as contributing to that stock’s sag.
But Small says that stock markets would likely be reacting favourably
Read more on globalnews.ca