After a historic election season, Donald Trump has once again emerged as the country’s commander-in-chief. Beating out current vice president Kamala Harris, the race provided a wide gap in both candidates, as all eyes now turn to what the next four years could look like. In the immediate aftermath, however, we break down how the US stock market reacted to Donald Trump’s 2024 election win.
The victory couldn’t have occurred at a better time. Earlier this week, inflation figures were reported at 2.1%, just hovering above the Federal Reserve’s target. Moreover, with interest rate cuts expected, there is a bullish sentiment beginning to form around the country’s economic standing. That should have had a direct impact on the country’s stock market.
Dow Jones Soars After Trump Election Win
Also Read: Nivida (NVDA) Boots Intel (INTC) From Dow Jones Index After 25 Years
The 2024 presidential election outcome proved to be massive for the Dow Jones. Indeed, it led the way, with DOW Future surgeon as much as 1,201 points higher after Trump’s victory was called by the Associated Press. It wasn’t just futures, as the stock market appeared to react in a similar fashion.
The Dow Jones Industrial Average had increased more than 1,000 points before the opening bell on Wednesday. That jump represents a jump of more than 2.79% for the market, as the stocks responded favorably to the eventual outcome.
Things only got more impressive as the day continued. Early in the day, the Dow had increased more than 1,300 points for a jump of more than 3.2%. Additionally, that increase represented a record-high opening for both the Dow Jones index and Nasdaq.
S&P 500 Following Suit: Sets Record Highs
Also Read: 4 Indicators Suggest the S&P 500 Index Could Head South
That momentum persisted throughout Wall Street, as a host of stocks and the market as a whole experienced a massive surge in value. It wasn’t just isolated to the Dow Jones, as the S&P 500 also experienced a record-breaking start to the day.
Bloomberg reported that the S&P 500 had hit an all-time high with Trump winning the presidential election. The stock market was part of a much larger surge, with the US dollar seeing its biggest increase in more than four years.
Ultimately, the S&P 500 had increased more than 1.5%, leaping to its 48th record mark in 2024 alone. The sentiment around the surge revolved around how Trump is likely to impact corporate America. Indeed, his presence has seemingly boosted the confidence of investors heading into his second term.
This may be just the start of a winning streak for the stock market. Earlier this week, investors predicted the S&P 500 could be on track to reach 7,000 by 2025 with a Republican sweep, according to a CNBC report. That should ensure that things will only get better for the US stock market after Trump’s election victory.
Trump Media & Technology Group (DJT) Gets Massive Bump After Race Is Called
Also Read: Trump’s Crypto Agenda: Analyzing His Past Statements and Future Impact
Although the market had been surging after the news, one stock that clearly surged was the Trump Media & Technology Grop (DJT), which increased as much as 25% in early trading Wednesday. That didn’t deter, as the stock maintained a 5% increase throughout most of the early trading day.
Additionally, shares pared surged so almost 10% just an hour into the day as the market reacted to Trump’s reelection. The news is ultimately good for the now incoming US president. Indeed, Trump currently holds nearly 60% interest in DJT.
The company is looking to continue building on its $7.4 billion market cap, with a price of around $37 per share. Moreover, based on those figures, it is evident that Trump has a $4.4 billion stake in the firm. The boost in value has ultimately made him nearly $500 million wealthier than he was prior to the results.
Tesla (TSLA) Surges 15% as Musk Takes On New Role
Also Read: Tesla Gets 4% Election Day Boost as TSLA Gets Back on Track
The lead-up to the election may not have been kind to the company, but Tesla (TSLA) has thrived after the results were announced. Indeed, the Elon Musk-led electronic automobile manufacturer had surged by as much as 15%.
Musk maintained a close connection to the ongoing race. He had endorsed Trump heavily, with his role in the newly elected president’s administration being highly discussed. Although his direct involvement may be overstated, the ties have certainly benefitted the financial performance of the manufacturer.
The company had boasted positive Q3 earnings but faltered with declining value in consecutive trading days. An underwhelming Robotaxi debut was the most direct culprit, as was Musk’s over-involvement in the election. As his role within the newly formed White House begins to take shape, how the company responds will be a vital point of observation.
