Stock Market Soars, US Dollar Surges Following Trump Victory

The U.S. stock market surged Wednesday following former President Donald Trump’s victory.

Trump defeated Vice President Kamala Harris, securing 270 electoral votes just before 2 a.m. EST Wednesday following victories in the battleground states of North Carolina, Georgia and Pennsylvania. U.S. stock indexes jumped following the news, with the S&P 500 and the Dow Jones Industrial Average rising roughly 1.9% and 3%, respectively, as of 11:19 a.m.. EST.

The U.S. dollar also strengthened greatly following news of Trump’s victory, with the ICE U.S. Dollar Index — the leading benchmark for the value of the dollar — on track for its strongest day Wednesday since Brexit in 2016, according to The Wall Street Journal. Meanwhile, currencies analysts expect could be affected by Trump’s tariffs have taken a nosedive, including the Chinese yuan and Mexican peso.

“The markets are now trading full-on ‘Trump trade,'” Stephen Dainton, president of Barclays Bank PLC, told the WSJ.

Tesla’s share price has risen over 13% as of 11:28 a.m. EST, with traders betting the automaker could benefit from CEO Elon Musk’s Trump endorsement.

Bitcoin surpassed $74,000, reaching a new intraday all-time high, while market volatility plummeted as uncertainty from the election subsided, according to the WSJ.

Green energy stocks, many of which are bolstered by subsidies from President Joe Biden’s Inflation Reduction Act, saw their share prices fall amid speculation Trump could move to repeal the climate law and impose elevated tariffs, the WSJ reported. Oil prices also fell, potentially due to expectations of increased production under Trump’s “drill, baby, drill” agenda.