An “everything rally” powered Wall Street on Wednesday after the 2024 election results, with Donald Trump emerging as the clear presidential winner. The Republican Party reclaimed control of the Senate, while the House of Representatives leans Republican but remains undecided.
The major U.S. equity indices – the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 – surged to record highs in early trading, as investor optimism grew on expectations of more favorable tax policies.
The S&P 500, Nasdaq, and Dow posted gains of 2.3%, 2.4%, and 3.3%, respectively.
However, the real standouts were small caps and bank stocks, with investors turning to domestic businesses and U.S. banks in anticipation of potential tariff protections and further financial deregulation.
The Russell 2000 jumped 5.5%, marking its largest single-day increase in two years.
Large-cap bank stocks climbed 6%, while regional banks tracked by the SPDR S&P Regional Banking ETF KRE soared 13%—both seeing their biggest one-day gains since November 2020, when the first COVID-19 vaccine was announced.
Clean energy stocks were among the day's worst performers, with the Invesco Solar ETF TAN plunging 11% for its steepest drop since March 2020, as investors braced for potential rollbacks on green initiatives under the Trump administration.
In the foreign exchange market, the U.S. dollar initially rallied nearly 2% before paring gains to 1.4% as traders awaited a Federal Reserve interest rate cut on Thursday.
Treasury yields spiked as expectations rose for larger budget deficits under Republican fiscal policies and higher inflation due to potential tariffs. The 10-year Treasury yield climbed 14 basis points to 4.41%, reaching a four-month high.
Gold prices fell 2.8%, silver dropped over 4%, while natural gas rose 3.8%. Oil prices remained steady.
In the cryptocurrency market, risk appetite thrived, with Bitcoin BTC/USD rising over 8% to reach a record high of $75,000. Ethereum ETH/USD gained 10%, and Dogecoin DOGE/USD surged 14%, the strongest performance among the top 10 cryptocurrencies.
Wednesday’s Performance In Major US Indices, Sectors
| Major Indices | Price | 1-day % chg |
| Russell 2000 | 2,388.20 | 5.6% |
| Dow Jones | 43,739.86 | 3.6% |
| Nasdaq 100 | 20,740.09 | 2.5% |
| S&P 500 | 5,922.98 | 2.4% |
| Sector | 1-day % chg |
|---|---|
| Financials | 6.0% |
| Energy | 4.0% |
| Industrials | 3.9% |
| Cons. Discretionary | 2.9% |
| Technology | 2.7% |
| Communications | 1.9% |
| Materials | 1.8% |
| Health Care | 0.3% |
| Utilities | -0.7% |
| Cons. Staples | -1.7% |
| Real Estate | -3.3% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust SPY rose 2.4% to $590.30.
- The SPDR Dow Jones Industrial Average DIA rallied 3.5% to $437.05.
- The tech-heavy Invesco QQQ Trust Series QQQ soared 2.5% to $504.69.
- The iShares Russell 2000 ETF IWM spiked 5.6% to $236.23.
- The Financials Select Sector SPDR Fund XLF outperformed, rising 6%. The Real Estate Select Sector SPDR Fund XLRE lagged, down 3.3%.
Wednesday’s Stock Movers
Stocks reacting to earnings reports were:
- Archer-Daniels-Midland Company ADM, up 2%,
- Devon Energy Corp. DVN, up 1.8%,
- Super Micro Computer Inc. SMCI, down 22%,
- CVS Health Corp. CVS, up 12%,
- DBA Sempra SRE, up 5.8%,
- American Electric Power Company Inc. AEP, down 3%,
- Cencora Inc. COR, up 5.5%,
- Howmet Aerospace Inc. HWM, up 10.7%,
Major companies moving in reaction to election results were:
- Tesla Inc. TSLA, up 14.8%,
- Capital One Financial Corporation COF, up 14.4%,
- Morgan Stanley MS, up 13.1%,
- Wells Fargo & Company WFC, up 13.1%,
- The Goldman Sachs Group, Inc. GS, up 12.9%.
The rallies in the stock and crypto markets drove shares of Robinhood Inc. HOOD and Coinbase Global Inc. COIN up by 18% and 26%, respectively.
Major losers among clean energy stocks included Enphase Energy Inc. ENPH and First Solar Inc. FSLR, down 16.7% and 10.5%, respectively.
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Image created using artificial intelligence via Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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