Wall Street’s main indexes reached record highs on Wednesday after former president Donald Trump defeated Vice President Kamala Harris in the 2024 presidential election.
The Dow Jones jumped 2.82 percent to an all-time record of 43,499, while the S&P 500 climbed 1.62 percent to 5,887 and the Nasdaq rose 1.69 percent to 18,860, both setting all-time highs, Reuters reported. The dollar, U.S. Treasury yields, and Bitcoin also soared after Trump secured 277 electoral votes in the early hours of Wednesday, surpassing the 270 needed for victory.
The surge comes as Wall Street is anticipating pro-business initiatives, including tax cuts and deregulation, under a second Trump administration. Republicans have also regained control of the Senate, with the House outcome yet to be determined.
"With the possibility of higher stimulus and reduced restrictions or regulations on industries, we could end up seeing the market post a strong rally between now and the end of the year," said Sam Stovall, chief investment strategist at CFRA Research.
Wall Street’s volatility index, or VIX, fell nearly 5 points to its lowest since September. VIX is a closely watched measure of expected volatility in the stock market over the next 30 days.
"There was relief that there was a quick and undisputed election result," senior market analyst David Morrison said.
The Federal Reserve is expected to lower the benchmark interest rate by 25 basis points this week, according to all 111 economists polled by Reuters. The central bank raised interest rates to a 23-year high as it sought to bring down inflation under the Biden-Harris administration.