US Stocks, bitcoin soar after Trump win; Dow jumps 1,200 amid inflation

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The U.S. stock market, Elon Musk’s Tesla, banks and bitcoin are all storming higher Wednesday as investors bet on what Donald Trump’s return to the White House will mean for the economy and world. Among the losers the market sees: the value of the Mexican peso and potentially anyone worried about higher inflation.

The S&P 500 was jumping by 2.1% in early trading and on track to top its all-time high set last month. The Dow Jones Industrial Average was up 1,292 points, or 3.1%, as of 9:35 a.m. Eastern time, while the Nasdaq composite was 2.1% higher.The U.S. stock market has historically tended to rise regardless of which party wins the White House, with Democrats scoring bigger average gains since 1945.

3%Investors see Trump’s policies potentially leading to stronger economic growth, which helps to push prices down and yields up for Treasurys. The yield on the 10-year Treasury jumped to 4.47% from 4.29% late Tuesday, which is a major move for the bond market. It’s up substantially from August, when it was below 4%.Investors also see Trump’s policies adding to future inflation, which likewise pushes up Treasury yields.

 

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