US stock indices, the dollar, and bitcoin rise as Trump announces election victory
Republican Donald Trump declared victory in the 2024 presidential election, with projections indicating that Republicans will also regain control of the Senate.
Trump expressed his gratitude to the American people for the “extraordinary honor” of being elected as the 47th President of the United States, following his first term as the 45th president from 2017 to 2021. He noted that America had granted him an unprecedented and powerful mandate.
The immediate market reaction showed a significant shift, with global investors pricing in the economic and business-focused agenda under Trump’s leadership.
The dollar index surged to its highest level in three months, rising by approximately 1% following Trump’s victory announcement. The dollar gained 1.8% against the Japanese yen, 1.3% against the British pound, and 1.8% against the euro.
US stock indices experienced notable gains on the news, with the S&P 500 rising 2.2% early on Wednesday, the Dow Jones increasing by 2.6%, and the Nasdaq advancing by 1.3%.
Bitcoin saw the most significant gains, surging by around 9% overnight, reaching a new record high, signaling the continuation of a larger uptrend following a brief correction.
Gold, however, reacted negatively to the news, pressured by a stronger dollar but managed to stay above the key $2700 support level, as demand for safe-haven assets remains high due to geopolitical tensions and a weak global economic outlook.
Crude oil prices dipped in early Wednesday trading, with WTI down by 2.5% and Brent easing by 2%. However, oil prices are likely to remain supported by Trump’s plans to boost US oil production, including exploration in the Arctic region.
Overall, the market response aligned with expectations, and further signals are anticipated as the news is digested. Investors will now focus on upcoming decisions from the Federal Reserve and the Bank of England, looking for additional clues on the Fed’s future monetary policy direction.
