Shares of Tesla, Donald Trump’s media business and domestic-focused small-cap companies surged on Wednesday in anticipation of a win for the former president even though some key states in the U.S. election are yet to post results.
Meanwhile, the S&P 500 futures hit an all-time high and futures tied to the small-cap Russell 2000 index surged 5.6% on bets that U.S.-focused companies would benefit from business incentives and tariffs that favor domestic production. Republicans took control of the Senate, while neither party appeared to have an edge in the fight for control of the House of Representative.
“If you look at historical playbook, a Republican sweep has been strong backdrop for the S&P 500 whereas a Republican presidency with a split Congress has given a more muted return,” Carrier said.Trump, who has positioned himself as pro-cryptocurrency, lifted bitcoin to a record high. Crypto-linked stocks Coinbase , MicroStrategy, Riot Platforms, MARA Holdings jumped between 11% and 14%.