The results of the 2024 Presidential elections came out, and Trump won with a substantial vote share over Democratic candidate Kamala Harris. Since the results, the U.S. stock market has surged and reached all-time high records. Not just U.S. markets but markets around the world also saw a surge. Moreover, after the results, Bitcoin shot up to its all-time high, and the Dollar witnessed the biggest one-day jump in the last 4 years.
The VIXAlso Read:, known as Wall Street’s “fear gauge” for stock volatility, plunged 21% as investors welcomed election clarity, driving demand for risky assets. The S&P 500 rose 2.4%, the Dow Jones surged 3.4%, and the Nasdaq gained 2.7%, all hitting record highs on Wednesday, while the MSCI world stock index climbed 1.3%.
The effects of Trump’s reelection can also be seen in Tesla share prices as they soared 13.6% after CEO Elon Musk emerged as a notable Trump supporter in the final phase of his 2024 campaign. Investors appeared to bet that Tesla would benefit from Elon’s ties with President Trump. As of today, 07-Nov-2024, the market cap of Tesla stands around $926 billion.
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However, one of the biggest reasons why investors seem happy with Trump’s victory is his stance on the nation’s finances and economy. Some experts suggest that had he won by small margin, the story could have been a lot different. However, as none of it happened, there is a political clarity in the country, which is always good for the markets.
Citing the surge, BlackRock Investment Institute said, “In the near term, we see U.S. equities supported by solid economic and corporate earnings growth, political clarity, and Federal Reserve rate cuts. In the long term, it much depends on how much of Trump’s agenda is enacted.“
