U.S. stock markets surged to record highs on Wednesday as Donald Trump’s election victory triggered massive gains across most sectors, with the Dow Jones Industrial Average posting its biggest daily percentage gain since November 2022.
The Dow jumped 1,500 points or 3.57% to close at a record 43,729.93, while the S&P 500 rose 2.5% to 5,927.30, marking its 48th record this year. The Nasdaq composite climbed 2.93% to 18,978.65.
The small-cap Russell 2000 index reached a three-year high with a 5.91% surge, as investors bet smaller domestic-focused companies would benefit from Trump’s promised tax cuts and protectionist policies.
Tesla shares soared nearly 15%, whilst Trump Media & Technology Group gained over 6%. The financial sector rose about 6%, with major banks including JPMorgan, Bank of America and Wells Fargo each gaining at least 6% on expectations of deregulation.
The U.S. 10-year Treasury yield jumped sharply to 4.47%, while Bitcoin reached a new all-time high above $75,000. The dollar headed towards its largest daily percentage gain since September 2022, boosted by expectations of Trump’s proposed tariffs on major U.S. trading partners.
Rate-sensitive real estate and utilities sectors were among the few decliners as investors weighed the impact of Trump’s policies on inflation and Federal Reserve interest rate decisions.
Markets widely expect the Fed to cut its benchmark rate by 25 basis points at Thursday’s meeting, though traders have begun reducing bets on further cuts in December and next year, according to CME’s FedWatch Tool.
Cryptocurrency-related stocks, energy companies and prison operators posted strong gains, while renewable energy shares declined.
The S&P banking index surged approximately 10% to a two-year high, reflecting optimism about Trump’s planned regulatory rollbacks.
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