Stock prices, bond yields, and bitcoin surged on Wednesday as former President Donald Trump was re-elected and the Republican party gained control of the Senate. Investors anticipate Trump's victory to result in faster economic growth and more market-friendly policies.
Prior to the U.S. markets opening on Wednesday, the future for the S&P 500 rose by 1.23%, the future for the Dow Jones Industrial Average was up by 1.02%, and the Nasdaq composite future increased by 1.43%.
Bitcoin's price soared by nearly 8% to a record $75,345.00, reflecting investor optimism about Trump's support for cryptocurrencies. Bond yields also climbed, with the 10-year Treasury yield rising to 4.4% from 4.28% on Tuesday.
Global markets are closely monitoring the implications of the U.S. election on economic, monetary, and trade policies, as well as geopolitics. The outcome of the House remains uncertain, and a divided Congress could complicate policymaking.
Since Trump is known for advocating economic growth, stock markets worldwide are expected to rise, except in China due to potential tariff increases. The dollar strengthened against the Mexican peso, Chinese yuan, yen, and euro.
Historically, the S&P 500 has seen gains in the majority of years under both Democratic and Republican presidents. The index has surged by almost 70% since President Joe Biden took office in 2020.
Trump's proposed policies, including higher tariffs on imports, have raised concerns about inflation. Chinese markets have been active as the country aims to boost economic growth and address local government debt.
In Asian trading, Japan's Nikkei 225 rose by 2.6%, while the Kospi in Seoul declined by 0.9%. Australia's S&P/ASX 200 increased by 0.8%, but Hong Kong's Hang Seng index fell by 2.2% amid U.S. election uncertainties.
U.S. benchmark crude oil dropped by 90 cents to $71.09 per barrel, and Brent crude fell by $1.00 to $74.53 per barrel.
