Markets see huge movement on Trump win

Trump handily cruised to victory, being declared the winner in the early morning hours ahead of markets opening. The stock market craves certainty, so the decisive victory played well on Wall Street as investors anticipate more tax cuts and further deregulation.

Trump has promised to gut regulations, promote economic growth, lower the corporate tax rate, and rein in the federal government.

Stocks

The Dow Jones Industrial Average, the tech-heavy Nasdaq, and the S&P 500 all broke all-time intraday trading records.

NEWLY ELECTED REPUBLICAN PLEDGES TO INTRODUCE TRUMP RECIPROCAL TARIFF BILL

At about midday Wednesday, the Dow was up 1,350 points, or 3.2%. If that number holds, it would represent the fourth-largest daily point increase in market history. The Nasdaq surged 440 points, or 2.4%, and the S&P 500 rose more than 2%.

Tesla founder Elon Musk bet big on Trump, pouring millions of dollars into getting the former president elected a second time. Shares of Tesla skyrocketed upon the news that Musk’s new ally will once again enter the White House, with the stock up 14% midday.

The company that owns Truth Social, Trump’s social media platform, soared 35% after the opening bell. Since then, those gains have been pared back, and by midday, Trump Media & Technology Group was trading up nearly 9%.

Clean energy stocks, such as those for solar power companies, saw losses on Wednesday following the Trump win. Trump has pledged to dial back certain energy transition rules promulgated under President Joe Biden and increase traditional energy production.

Multiple solar companies were down by double digits on Wednesday. For instance, solar panel maker First Solar was down 11% midday, solar-tech company Emphase plunged more than 17%, and Sunrun fell more than 27%.

Currencies

Trump has pledged a historic increase in tariffs, which would be unwelcome for countries that trade with the United States, sending the dollar up and the value of foreign currencies down.

Trump has vowed to implement crushing tariffs on China. The Chinese yuan was down about 1.3% midday in response to the apparent Trump victory. Meanwhile, given the specter of tariffs, the Mexican peso fell about 0.83% on Wednesday.

Notably, during his first term, Trump threatened to use federal law to impose tariffs on all Mexican imports, leveraging the threat to exact concessions on immigration. Trump later backed down from the move after Mexico agreed to make some changes to its immigration enforcement.

The European euro also fell about 1.7% in midday trading.

Overall, the dollar was up more than 1.6%.

Cryptocurrency

Trump mounted a full-scale embrace of the cryptocurrency industry during his campaign this year. The former president, who once called bitcoin a “scam,” has since done an about-face and vowed to insulate crypto from government overregulation.

Bitcoin, the flagship cryptocurrency, broke a new all-time record late Tuesday as it became apparent that Trump was overperforming in key battleground states and appeared poised to be anointed the winner of the presidential contest.

Bitcoin crested at above $75,000 in the early morning hours of Wednesday as Trump claimed victory. As of midday Wednesday, bitcoin was valued at $74,500, up 6.5% over the past 24 hours.

Likewise, ethereum, the second-largest cryptocurrency, was up more than 8%. Solana lurched 11% higher, Cardano was up more than 5%, Ripple rose 3.8%, and the “meme coin” dogecoin, which Musk has long hyped, was up 7.9%. At one point Tuesday night, dogecoin was up 28%.

Metals

Domestic steel and aluminum producers stand to benefit from tariffs. Trump previously applied tariffs on foreign imports of steel and aluminum during his first term.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

The Dow Jones aluminum index was up 6.7% around midday Wednesday, while the Dow Jones U.S. steel index shot up nearly 13% in response to the win.

The overall Dow Jones U.S. industrial metals index was up 7.5% in response to the election, while the construction and materials index rose 2.7%.