US Election Results: After the election results, Dow jumped 1500 points, S&P 500 at record level

Republican candidate Donald Trump has won the US presidential election. The impact of Trump's victory was also seen on benchmark indices on Wall Street on Wednesday. The index hit a record high. After this victory, Trump is set for a second term in the White House after a gap of four years. All three benchmark indices closed high after Trump's victory on Wednesday. The effect of the victory was that the Dow Jones closed at close to 44,000 points. The Dow Jones recorded an increase of more than 1,500 points or 3.5%. This was the best one-day profit for the index since November 2022.

Talking about the S&P 500, it also saw its best post-election trading session on record, jumping 2.5% near the 6,000 level. The S&P 500 saw its 48th record high for 2024, while the NASDAQ Composite also saw a 3% gain, led by a 15% jump in Tesla shares. The NASDAQ Composite closed near the 19,000 mark.

The Russell 2000, a gauge of mid and smallcap stocks, closed at a 52-week high after jumping 6%. According to analysts, midcap and smallcap stocks are expected to perform better after Trump's arrival. This is also because Trump is more domestically oriented. The impact of Trump's America First policy can be seen positively on midcap and smallcap companies. US yields rise US 10-year yields rose 17 basis points, or 4.44%. A dollar gauge added 1.3% to this rally, with the yen being among the major currencies that saw losses. The euro is also down 1.8%. Talking about the Mexican peso, it closed flat after falling 3.5%. Bitcoin, which many see as a trade linked to Trump's election as he supported digital assets during his campaign. Bitcoin set a new record. Meanwhile, gold and copper prices fell and oil prices also recorded a slight decline. Analyst Ryan Grabinsky said at Strategies "The biggest takeaway from last night is that we got the certainty that the market was craving." He further said that "this will allow both business and consumer confidence to improve. After this surge, the focus should now shift to the Fed meeting tomorrow." What is the trigger from the win? The stock market boom triggered by Trump's presidential win has generated buy signals for rule-based investment funds, giving the rally further momentum. "The year-end rally for 2024 starts today and may be higher than investors expect," Goldman Sachs Group Inc. expert Scott Ruber wrote in a note to clients on Wednesday. Volatility-control funds are expected to buy $50 billion of U.S. stocks in the next month and a total of $110 billion through January, according to an analysis by Nomura. Chris Senek at Wolfe Research says he remains bullish on stocks through year-end. "With Donald Trump winning the 47th presidency of the United States, we believe the market will be heavily biased by financials, U.S.-based industrials (transports), energy and crypto today and through year-end," he said. He further added that "we think more attacking technology as well as volatility will be expected." Semiperforming as well as outperforming will prevail. Style-wise, we own value, equal weight, small-cap and year-to-date laggards." For now, the focus shifts to the US Federal Reserve and the outcome of its policy meeting later tonight Indian time.
 

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