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US stocks surged to record highs on Wednesday as investors digested Donald Trump’s victory in the US presidential election over Kamala Harris.
A call in the state of Wisconsin in favor of Trump on Wednesday morning put him over the top. He is set to return to the White House as the 47th president in a victory that seemed unfathomable four years ago.
The Dow Jones Industrial Average (^DJI) jumped 3.5%, or about 1,500 points, to close at a record and post its best day since 2022. The benchmark S&P 500 (^GSPC) increased roughly 2.5% to surpass the 5,900 level, while the tech-heavy Nasdaq Composite (^IXIC) rose about 2.9%, also clinching a new record.
Meanwhile, the 10-year Treasury note (^TNX) rose 13 basis points to 4.43%. Bitcoin (BTC-USD) rallied to a record alongside a surge in the dollar (DX-Y.NYB) as the election outcome bolstered the "Trump trade."
Outside of the presidential election, Republicans have also flipped the Senate. Control of the House of Representatives remains unclear (and likely will for days or weeks).
Some experts had viewed Trump’s policies as more positive for the financials sector. This spurred a massive rally in regional banks before the open on Wednesday. The S&P Regional Banking ETF (KRE) was up more than 11%.
Meanwhile, the small-cap Russell 2000 (^RUT), which includes some regional banks, soared more than 5%.
Tesla’s (TSLA) stock jumped more than 14% in individual moves. The electric vehicle maker’s CEO, Elon Musk, publicly supported and donated heavily to the Trump campaign.
The Federal Reserve Open Market Committee began its two-day rate policy meeting on Wednesday. Investors widely expect Fed officials to announce a rate cut on Thursday afternoon. The CME FedWatch Tool showed a 99% likelihood that policymakers will opt for a 25-basis-point reduction.
