'Trump Trade': Election news leads to biggest 1-day stock market gain in 2 years

All 3 awesome banal indices spot grounds finishes.

The “Trump Trade” was successful overdrive Wednesday, making it 1 for nan history books connected Wall Street pinch grounds finishes for each 3 awesome banal indices.

The Dow Jones Industrial Average rocketed 3.6%, its biggest 1 time jump since November 2022. The S&P 500 changeable up 2.5% while nan Nasdaq climbed astir 3%.

The biggest winners were companies and sectors that investors are betting will use from President-elect Trump’s policies.

Bank stocks, including JP Morgan Chase (JPM), Wells Fargo (WFC), and Bank of America (BAC) rallied connected nan committedness of little taxes and little regulation. The small-cap Russell 2000 Index (RUT), which includes immoderate location banks, soared astir 6%.

It was nan biggest surge for nan U.S. dollar since 2020, and Carl Icahn, nan activistic investor and billionaire, said it will lead to little regularisation and much mergers and acquisition.

Republican statesmanlike nominee erstwhile President Donald Trump arrives astatine an predetermination nighttime watch statement astatine nan Palm Beach Convention Center, Nov. 6, 2024, successful West Palm Beach, Fla.

Evan Vucci/AP

Elon Musk was possibly nan day’s biggest winner. Shares of his Tesla Corporation (TSLA) rocketed astir 15%. The world’s wealthiest personification has been a staunch Trump proponent, donating much than $130 cardinal toward Trump’s predetermination efforts. In his triumph speech, nan president-elect referred to Musk arsenic a “super genius” and has promised him a domiciled successful his administration.

“The biggest affirmative from a Trump triumph would beryllium for Tesla and Musk,” wrote Dan Ives, Senior Equity Research Analyst astatine Wedbush. “We judge a Trump presidency would beryllium an wide antagonistic for nan EV manufacture arsenic apt nan EV rebates/tax incentives get pulled. However, for Tesla we spot this arsenic a immense positive. Tesla has nan standard and scope that is unmatched successful nan EV manufacture and this move could springiness Musk and Tesla a clear competitory advantage successful a non-EV subsidy environment, coupled by apt higher China tariffs that would proceed to push distant cheaper Chinese EV players from flooding nan US market,” Ives wrote successful a investigation note.

The cryptocurrency marketplace besides shouted Trump’s return to nan White House. Bitcoin (BTCUSD) notched a grounds close, climbing supra $75,000. Trump has said he wants nan U.S. to beryllium nan “crypto superior of nan planet” and plans to create a “strategic reserve of bitcoin.”

In September, he moreover launched his ain crypto platform, World Liberty Financial, a caller task pinch family members to waste and acquisition cryptocurrencies.

Donald Trump saw his individual wealthiness balloon during Wednesday’s banal marketplace rally, astatine slightest connected paper. Shares of his Trump Media and Technology Group (DJT), nan genitor institution of his societal media level Truth Social, soared much than 30% astatine nan market’s unfastened but pulled backmost considerably to decorativeness conscionable 6% higher. Still, that gave nan institution a marketplace headdress of astir $7.2 billion, pinch Trump’s mostly liking worthy astir $4.1 billion.