FxNews—On Wednesday, the U.S. stock market experienced a significant rally. The S&P 500 index increased by 2%, the Nasdaq rose by 1.9%, and the Dow Jones jumped by 1,240 points. This surge coincided with Donald Trump’s victory in the U.S. Presidential election.
Donald Trump secured at least 277 electoral votes, surpassing the 270 needed to win. He achieved key victories in Pennsylvania, Georgia, and North Carolina. Additionally, the Republican Party regained control of the Senate.
Investors are optimistic that a second Trump administration will introduce policies favorable to businesses. They anticipate tax cuts, reduced regulations, and new tariffs, which could boost economic growth, increase corporate profits, and lead to higher inflation.
Financial Sector Leads as Industrial and Energy Stocks Climb
Stocks in the financial sector rose by more than 5%. Industrial and energy companies were also among the top performers. In contrast, sectors like real estate, utilities, and consumer staples did not fare as well.
Tesla’s stock price soared by approximately 14%. The banking sector enjoyed substantial gains, with JPMorgan’s stock up by 7.6%, Bank of America increasing by 8.1%, and Wells Fargo climbing by 14%. On the other hand, some companies faced declines in their stock prices, including Meta (down 2.1%), Eli Lilly (down 0.9%), and Home Depot (down 3%).