The stock market indices on Wall Street opened to a clear rise on Wednesday, as the result of the US presidential election was confirmed.
The flagship index S&P 500 was up 2.1 percent at the opening, the Nasdaq was up 1.9 percent and the Dow Jones was up 3.1 percent.
The fastest rise was in the stock exchange’s small companies, which were listed by the Russell 2000 with a rise of 5.2 percent.
If the upward trend of the stock markets holds, the stock market will have the best presidential election year in nine decades, according to Bloomberg.
Among large companies, the clearest price movement was seen in Tesla, whose stock was up 14.4 percent. Tesla’s CEO has given his open support For Donald Trumpand investors believe that the hype is to the company’s advantage.
The media company that runs Trump’s Truth Social platform Trump Media & Technology Group was up a whopping 24.3 percent. Trump owns the majority of the company.
The country’s oil company was also buoyed by the energy sector, whose basket of shares strengthened by almost three percent.
Based on price movements, investors are guessing that Trump’s second term as president will resemble the first: tax cuts, deregulation and import tariffs would be promised. Such a policy would support economic growth and company results in investors’ forecasts, but would tighten inflation on the other hand. The sharp rise in the interest rate on the country’s government bonds also signals that Trump’s policy is believed to inflate the country’s budget deficit.
“The risk now is whether President Trump is the same as presidential candidate Trump,” he summed up Pictet Asset Managementin rescuer Luca Paolini Bloombergille.
“We have to be careful, because with the stock market at an all-time high, Trump’s agenda can be really disruptive to certain sectors. All we can do is wait.”