S&P 500 and Nasdaq Soars 2% as Trump Secures Return to White House

Barry Adams
06 Nov, 2024
New York City

Stock market indexes soared after former president Donald Trump secured a return to the White House in the U.S. presidential election. 

The S&P 500 index increased 2.0%, the Nasdaq Composite advanced 2.1%, and the U.S. dollar advanced against all major currencies. 

Former president Donald Trump defeated his democratic opponent Kamala Harris in a hotly contested presidential election as a Republican wave swept the nation and the congressional election. 

Donald Trump is expected to secure 276 Electoral College votes, more than the minimum 270 needed to win the presidential election, including wins in key swing states of North Carolina, Pennsylvania, Georgia, and Wisconsin. 

The control of the U.S. Senate also switched to the Republican Party, while the control of the House is still undecided. 

Companies seen as beneficiaries under the Trump presidency soared in early trading, and Tesla advanced as much as 13%. 

Cryptocurrency-linked stocks also soared, and Bitcoin jumped to a record high of $75,000 in the hopes that the relaxed regulation could benefit the sector. 

The U.S. dollar advanced against all major currencies on speculation that Trump's proposed tariffs against major trading partners, including China, the European Union, and Mexico, could boost the currency. 

The 10-year Treasury yield jumped to 4.43% on the assumption that the proposed spending plan by Trump would reignite inflationary pressures and may force the Federal Reserve to keep higher interests for longer. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 2.0% to 5,901.45, the Nasdaq Composite rose 2.1% to 18,832.39, and the Russell 2000 index rose 1.9% to 2,260.84. 

The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes inched higher to 4.45%, and 30-year Treasury bonds increased to 4.61%.

WTI crude oil decreased $1.47 to $70.51 a barrel, and natural gas prices edged up 2 cents to $2.69 a thermal unit.

Gold decreased by $55.24 to $2,691.09 an ounce, and silver declined by $1.55 to $31.55.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 105.42.

 

U.S. Stock Movers

Banks traded higher as investors speculated that the large and medium-sized banks are likely to benefit from Trump's economic policies. 

JPMorgan Chase jumped 5.2% to $233.15, Wells Fargo advanced 8.4% to $69.44, Citigroup increased 7.2% to $68.59, and Regions Financial edged higher 7.2% to $25.31. 

Discount retailers fell on the worry that the new administration would impose universal tariffs on all imported goods and 60% tariffs on imports from China.

Dollar Tree declined 2.2% to $65.30, Dollar General fell 1.2% to $80.58, and Five Below plunged 10.8% to $84.0. 

Cryptocurrency-linked stocks soared after Bitcoin jumped to a record high of $75,000. 

MicroStrategy Inc. soared 10% to $252.80, MARA Holding advanced 8.2% to $17.57, and Riot Platforms jumped 7.3% to $10.44.