Wall Street’s main indexes surged to record highs today, following the unexpected victory of Republican Donald Trump in the 2024 U.S. presidential election. The win marks a dramatic comeback for Trump, who was ousted from office four years ago.
Markets are reacting positively to expectations that Trump’s policies—such as tax cuts, deregulation, and his aggressive stance on global trade—will stimulate economic growth. However, concerns over potential tariff hikes and the resulting pressure on inflation and the national deficit remain. Despite these challenges, investors are buoyed by the possibility of a more business-friendly administration.
The Dow Jones Industrial Average surged by over 1,250 points, with the benchmark index nearing the psychologically significant 6,000 level. U.S. Treasury yields also spiked, while the dollar strengthened and Bitcoin reached an all-time high.
“There was relief that the election results were quick and undisputed,” said David Morrison, senior market analyst at Trade Nation. “That certainty helped drive market optimism.”
In contrast, European markets showed mixed results. The FTSE 100 in London rose by 0.4%, reaching 8,208 points, while the Paris CAC edged up by 0.1% to 7,414. However, the Frankfurt DAX fell 0.3%, to 19,183, and Dublin’s ISEQ Index reversed earlier gains, dropping 0.3%.
Analysts are closely watching Trump’s proposed economic policies, which include restricted immigration, tax cuts, and tariffs on foreign goods. While these measures could fuel inflation and bond yields, they are also expected to strengthen the dollar and limit potential interest rate cuts by the Federal Reserve. Despite this, markets are still anticipating a 25-basis point rate reduction by the Fed tomorrow.
“While early results weren’t entirely surprising, we’re seeing Treasury yields rise, the dollar strengthening, and Bitcoin reaching new highs—classic Trump trade behavior,” said Brian Jacobsen, chief economist at Annex Wealth Management.
The 10-year U.S. Treasury yield climbed to 4.471%, its highest level in four months, while the two-year yield rose to 4.291%. These increases reflect concerns over future fiscal policies under both Trump and his rival, Democrat Kamala Harris.
In currency markets, the dollar surged 1.5%, pushing the euro down to $1.0772 and the Japanese yen to 153.94 yen. Bitcoin also saw significant gains, rising 8.54% to hit a record $75,060. The dollar’s strength, however, pressured oil prices, with U.S. crude falling by 66 cents to $71.33 per barrel.
As the global markets continue to react to the election results, attention now shifts to the potential economic impact of Trump’s policies, particularly regarding trade and inflation.
