Stocks hit record high after election day

Wed 11/06/2024

by Ellie LeTu

Source: Financial Times

• Record high for stocks

  • US stocks surged to a record high.

    • S&P 500 gained 2.5% (biggest day in two years).

    • Nasdaq gained 3%.

  • Markets believe Trump’s economic plan will boost stocks and reduce the pace of interest rate cuts.

  • The Vix fell to 16, it’s lowest level since late September.

• Companies expected to do well under Trump surged

  • Tesla jumped by 15% due to Elon Musk’s association with Donald Trump.

  • Banks leapt on hopes of lighter regulation.

    • Goldman Sachs gained 13%.

  • Russell 2000 jumps 6%.

    • A belief that Trump’s tariffs will support smaller American companies the most.

• Trump’s tariffs loom large for other countries

  • The US Dollar surges.

    • Gained the most in three years, appreciating relative to the Euro, Yen, and Pound.

  • Europe stock market hit hard.

    • A potential trade war between Europe and the USA further darkens the outlook for an already struggling EU economy.

  • Chinese and Hong Kong markets fell as well.