ow soars 1,200 points to a record, Russell 2000 jumps 4% as Trump defeats Harris: Live updates
CNBC ^ | November 06, 2024 | Yun Li, Jesse Pound
Posted on 11/6/2024, 11:47:14 AM by Red Badger
Stocks rallied sharply on Wednesday, with major benchmarks hitting record highs, as Donald Trump won the 2024 presidential election.
The Dow Jones Industrial Average surged 1,263 points to a record high, or around 3%. The last time the blue-chip Dow jumped more than 1,000 points in a single day was in November 2022. The S&P 500 also hit an all-time high, popping 1.8%. The Nasdaq Composite climbed 2% to a record of its own.
NBC News projects that Trump will defeat his Democratic rival, Kamala Harris, after winning 276 Electoral College votes, including key swing states of Pennsylvania, North Carolina and Georgia. Follow CNBC’s 2024 election live blog here.
Investments seen as beneficiaries under a Trump presidency erupted as the former president appeared set to claim victory. Tesla, whose CEO Elon Musk is a prominent backer of Trump, saw shares surge 13%. Bank shares got a boost with JPMorgan Chase climbing 10% and Wells Fargo jumping 13%.
The small cap benchmark Russell 2000 surged 4.5%. Small companies, which are more domestic-oriented and cyclical, are believed to enjoy outsized benefits from Trump’s tax cuts and protectionist policies.
“For now, investor sentiment is pro-growth, pro-deregulation, and pro-markets, as seen in the overnight market action,” David Bahnsen, chief investment officer at The Bahnsen Group. “There is also an assumption that M&A activity will pickup and that more tax cuts are coming or the existing ones will be extended. This creates a strong backdrop for stocks.”
Bitcoin, which could benefit from relaxed regulation, soared to an all-time high of $75,000. The dollar index climbed to its highest level since July on the belief that Trump’s proposed tariffs against major U.S. trading partners would boost the greenback. The 10-year Treasury yield jumped to around 4.45% on speculation Trump’s proposed tax cuts and other spending plans would spark economic growth, but also widen the fiscal deficit and reignite inflation.
Shares of Trump Media & Technology Group , a social media company closely tied to Trump, was last up 4.5% in volatile trading.
In the race for Congress, NBC News projects that Republicans will win back the Senate. Leading up to election, Democrats were expected to take control of the House, but so far it was still up for grabs, leaving open the possibility of a so-called red sweep. A Republican wave could lead to more drastic spending changes or a big revamp of tax policy.
“It looks like a Trump presidential win but also a win for Republicans in House and Senate. If that happens, you’re going to see the U.S. economy really taking off,” Mark Mobius, Mobius Emerging Opportunities Fund chairman, told CNBC early Wednesday.
Dollar at overbought levels, says strategist The dollar index jumped 1.7% to 105.13 Wednesday following Donald Trump’s victory in the U.S. presidential election.
On a technical level, the dollar has cleared the 104 resistance level, leaving the 106-107 level as the next major hurdle to overcome.
“Momentum is confirming the breakout but is overbought short-term. Support for pullbacks sets up at 104 and the 200-day moving average at 103.85,” said LPL Financial chief technical strategist Adam Turnquist.
Turnquist added that continued dollar strength could pressure international stocks, particularly emerging markets.
— Hakyung Kim
