Stocks and bitcoin jump after Trump's victory. So do worries about inflation as Dow surges 1,400
The U.S. stock market, Elon Musk’s Tesla, banks and bitcoin are storming higher as investors bet on what Donald Trump’s return to the White House will mean for the economy and world
NEW YORK — The U.S. stock market, Elon Musk’s Tesla, banks and bitcoin are all storming higher Wednesday as investors bet on what Donald Trump’s return to the White House will mean for the economy and world. Among the losers the market sees: solar-power companies and potentially anyone worried about higher inflation.
The S&P 500 was jumping by 2.4% in afternoon trading and on track to top its all-time high set last month. The Dow Jones Industrial Average was up 1,438 points, or 3.4%, as of 2:30 p.m. Eastern time, while the Nasdaq composite was 2.8% higher.
The U.S. stock market has historically tended to rise regardless of which party wins the White House, with Democrats scoring bigger average gains since 1945. But Republican control could mean big shifts in the winners and losers underneath the surface, and investors are adding to bets built earlier on what the higher tariffs, lower tax rates and lighter regulation that Trump favors will mean.
“The markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook,” Peter Esho of Esho Capital said.
Of course, how much change Trump will be able to effect will likely depend on whether his fellow Republicans win control of Congress, and that’s still to be determined. That could leave room for snaps back in some of Wednesday’s big knee-jerk movements.
Nevertheless, the market is cleaving between rather clear winners and losers following Trump’s dramatic win. Among them:
Bank stocks led the market higher, in
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