Stocks and bitcoin jump after Trump's victory. So do worries about inflation as Dow surges 1,500

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Financial Markets,Inflation,Stocks And Bonds

U.S. stocks stormed to records as investors made bets on what Donald Trump’s return to the White House will mean for the economy and the world. The S&P 500 jumped 2.5% Wednesday for its best day in nearly two years. The Dow Jones Industrial Average surged 3.6%, and the Nasdaq composite gained 3%.

The U.S. stock market, Tesla, banks, and bitcoin are storming higher as investors bet on the impact of Donald Trump’s White House return. But as AP Deputy Market’s Editor Seth Sutel explains, not all sectors are winners.A television screen on the floor of the New York Stock Exchange displays results of the Presidential election, Wednesday, Nov. 6, 2024. A television screen on the floor of the New York Stock Exchange displays results of the Presidential election, Wednesday, Nov. 6, 2024.

Of course, how much change Trump effects in his second term will likely depend on whether his fellow Republicans win control of Congress, and that’sAP AUDIO: Stock market today: Stocks, bond yields and bitcoin advance as US election brings Republican gainsBank stocks led the market higher, in part on hopes that a stronger economy would mean more customers getting loans and paying them back with interest. They also rallied on hopes for lighter regulation from a Republican White House.

A drop-off in immigration could also mean a crunch of available workers for employers, which could force companies to raise wages for workers faster and put more upward pressure on inflation.The Fed will announce its latest decision on interest rates Thursday, where the expectation is still for a cut, according to data from CME Group. But traders are already paring back forecasts for how many cuts the Fed will provide through the middle of next year.

 

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