(DailyChive.com) – After Donald Trump’s big election win, the stock market jumped. Early morning trading showed sharp rises in the major indexes as investors moved quickly, expecting that Trump’s policies will lead to changes in taxes, trade, and regulations.
Stock futures on the Dow Jones, S&P 500, and Nasdaq all showed gains before the market officially opened. The S&P 500 futures were up over 2 percent, the Dow Jones rose close to 3 percent, and the Nasdaq increased by 1.3 percent. The Russell 2000 index, which represents smaller U.S. companies that are more sensitive to economic changes, shot up nearly 6 percent, hinting at confidence in American businesses.
This reaction was similar to what happened back in 2016 when Trump surprised everyone with his first election win. Back then, the market quickly adjusted to what was called the “Trump trade,” with investors betting on tax cuts and other business-friendly policies.
Meanwhile, the bond market also saw big changes. Bond prices fell, causing yields to rise. The yield on the 10-year U.S. Treasury jumped to 4.46 percent, up from 4.29 percent. When bond prices fall, their yields go up, usually because investors think the economy might grow faster than expected.
Trump’s election impact wasn’t limited to the United States. In Europe, stocks were mostly up as well, with gains in major countries like Germany, France, and the United Kingdom.
Asia saw mixed results, though. Japanese stocks went up, with the Nikkei 225 index rising 2.6 percent, as Japan anticipated benefits from Trump’s trade and economic focus. However, in China, the mood was different. The CSI 300, which tracks the biggest stocks in mainland China, fell slightly. Hong Kong’s Hang Seng Index dropped by 2.3 percent, reflecting some caution about what Trump’s policies could mean for Asia.
Overall, Trump’s win has energized investors in many parts of the world, especially in the U.S. Investors seem hopeful that his policies might bring about a new era of growth, even if that growth comes with risks.
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