New York, Thursday, November 07, 2024- The Dow Jones Industrial Average skyrocketed 1,500 points, marking its best performance since 2022 in a dramatic post-election rally on Wednesday as investors reacted positively to former President Donald Trump’s victory.
This rally also propelled the S&P 500 and Nasdaq Composite to new all-time highs, reflecting market optimism about the anticipated pro-business policies under Trump’s incoming administration.
Major US automakers Ford and General Motors saw gains following Bank of America’s favorable outlook.
Analysts noted these legacy carmakers are set to benefit from expected regulatory easing on decarbonization efforts, which had previously threatened profit margins on their core truck businesses. However, some risks remain, with possible tariffs on imported components from Mexico posing challenges for these manufacturers.
Crypto exchange Coinbase had an exceptional day, with shares climbing 26%—the most since its 2021 debut—as Bitcoin hit a new peak above $75,000. Analysts at Needham predict Trump’s win will benefit the broader crypto sector, boosting Coinbase and Robinhood, which saw shares rise 18%.
Further gains were noted among financial stocks, which surged 24% year-to-date, with capital markets stocks leading the sector. Goldman Sachs, up 54% in 2024, continues to drive investor confidence. However, the rally could face limitations as uncertainty remains over tariffs and Treasury yield increases.
With markets historically rallying after elections, experts are closely watching how Trump’s proposed policies will shape markets, while heightened volatility in dollar strength and bond yields could moderate gains in the months ahead.
