Stocks and bitcoin soar after Trump’s victory, while inflation worries rise

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The U.S. stock market, Elon Musk’s Tesla, banks and bitcoin are storming higher as investors bet on what Donald Trump’s return to the White House will mean for the economy and world.

Updated: 1 minute agoThe New York Stock Exchange in New York's Financial District on Tuesday, Nov. 5, 2024.

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 markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook,” Peter Esho of Esho Capital said.

“Trump keeps openly telling people that he will increase tariffs not just on China but with every trade partner,” said Andrzej Skiba, Head of BlueBay U.S. Fixed Income at RBC Global Asset Management. “We’re talking 10% tariffs across all global partners. This is a big deal because this could add 1% to inflation. If you add 1% to next year’s inflation numbers, we should say bye to rate cuts.”

 

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