The U.S. election ended with Trump declaring victory, and the "Trump trade" reached a climax in the capital market, with funds pouring into winners that are expected to benefit from Republican policies and selling expected losers.
According to 4E monitoring, the three major U.S. stock indexes hit record highs on Wednesday. The S&P 500 index rose 2.5%, the largest increase since election day in history, the Dow Jones Industrial Average rose 3.57%, the largest increase in two years, and the Nasdaq closed up 2.95%. Most technology stocks rose, and Tesla's stock price soared nearly 15% overnight to its highest level since July 2023. Trump Media Technology (DJT), prison stocks, cryptocurrency concept stocks, bank stocks, and energy stocks collectively rose sharply, and the photovoltaic and new energy sectors closely related to the "Harris victory concept" suffered a complete defeat.
Trump's victory triggered a boom in the cryptocurrency circle, and cryptocurrencies soared across the board. Bitcoin also hit a record high in the surge, once rising to $76,400. As of press time, Bitcoin was trading at $75,400, up 6%, and Ethereum was trading at $2,817, up 13.63%.
The U.S. dollar index rose more than 1.6% to above 105, the highest in nearly four months. All other currencies were under pressure. The yen fell more than 1.9% to a three-month low. The offshore renminbi fell to around 7.2 for the first time in more than three months. The euro fell more than 1.8% and was heading for its worst day in more than four years, reaching its lowest level in more than four months.
U.S. oil prices fluctuated lower. Affected by the U.S. EIA crude oil supply hitting a new high since August and the strengthening of the U.S. dollar, oil prices fell more than 3% under pressure, and then narrowed the decline to more than 0.4%. Spot gold fell sharply. Due to the strengthening of the U.S. dollar and the potential tariff policy that may raise inflation and cause the Federal Reserve's interest rate cuts to stagnate, spot gold recorded the largest single-day drop in five months. U.S. stocks fell more than 3% in late trading and fell below $2,660 to a three-week low.
The US election ended with the victory of Trump's camp. The global market is playing a game on the "Trump 2.0 era" and starting to bet on a situation where both economic growth and inflation are rising. Investors are paying close attention to the Federal Reserve's monetary decision and Powell's speech tonight.
