S&P 500 Futures Break Records Amid Trump Election Claims

Image Credit : Reuters

 

S&P 500 futures reached a record high in a strong, broad-based rally on Wednesday after Republican Donald Trump declared victory in the U.S. presidential election.

Fox News projected Trump’s win over Democratic candidate Kamala Harris, though other media outlets had yet to confirm the result.

As election results started to roll in, markets surged on "Trump trades": U.S. Treasury yields climbed, bitcoin hit a new high, and the dollar strengthened. “Markets absolutely crave certainty,” said Dr. David Allen, portfolio manager at Plato Global Alpha Fund, adding that the possibility of a Trump win was “priced in at the margins.”

At 3:35 a.m. ET, Dow E-minis rose 986 points (2.33%), U.S. S&P 500 E-minis were up 117.25 points (2.02%), and Nasdaq 100 E-minis gained 337.25 points (1.66%).

Meanwhile, Russell 2000 futures, tracking small-cap stocks, jumped 5.1% to their highest level since early 2022, with investors expecting domestically focused stocks to benefit from lighter regulatory and tax burdens and less exposure to tariffs.

The Republican party also took control of the U.S. Senate and made early gains in the House of Representatives, setting up a potential "clean sweep" that could streamline Trump's legislative agenda.

"I think Trump 2.0 will be different from his first term," Allen remarked. "I expect significant legislation in the first 100 days, so hold on to your hats."

Analysts suggest that Trump’s policies on immigration, tax cuts, and tariffs could drive inflation and higher bond yields, while his tax and regulatory changes would likely favor corporations.

Tesla’s shares, listed in Frankfurt, jumped 13%, as investors rallied behind the stock with CEO Elon Musk publicly supporting Trump throughout the campaign.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters all rights reserved by the original author.