Wall Street erupted in an “everything rally” on Wednesday, fueled by the resounding victory of Donald Trump in the 2024 presidential election. The Republican Party’s control of the Senate was solidified, while the House of Representatives is expected to lean Republican, though the outcome remains uncertain. Investor optimism soared, driven by the anticipation of more favorable tax policies and potential deregulation under a Trump administration.
The major US equity indices reflected this bullish sentiment. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all surged to record highs in early trading. The S&P 500, Nasdaq, and Dow posted impressive gains of 2.3%, 2.4%, and 3.3%, respectively. However, the real standouts were small caps and bank stocks. Investors flocked to domestic businesses and US banks, expecting potential tariff protections and further financial deregulation. The Russell 2000 jumped a remarkable 5.5%, marking its largest single-day increase in two years. Large-cap bank stocks climbed a significant 6%, while regional banks tracked by the SPDR S&P Regional Banking ETF (KRE) soared 13%, both experiencing their biggest one-day gains since November 2020, when the first COVID-19 vaccine was announced.
The cryptocurrency market mirrored the bullish sentiment, with Bitcoin (BTC/USD) rising over 8% to reach a record high of $75,000. Ethereum (ETH/USD) gained 10%, and Dogecoin (DOGE/USD) surged 14%, the strongest performer among the top 10 cryptocurrencies.
Clean energy stocks, however, were among the day’s worst performers. The Invesco Solar ETF (TAN) plunged 11%, its steepest drop since March 2020, as investors braced for potential rollbacks on green initiatives under the Trump administration. In the foreign exchange market, the US dollar initially rallied nearly 2% before paring gains to 1.4% as traders awaited a Federal Reserve interest rate cut on Thursday. Treasury yields spiked as expectations rose for larger budget deficits under Republican fiscal policies and higher inflation due to potential tariffs. The 10-year Treasury yield climbed 14 basis points to 4.41%, reaching a four-month high. Gold prices fell 2.8%, silver dropped over 4%, while natural gas rose 3.8%. Oil prices remained steady.
The rallies in the stock and crypto markets drove shares of Robinhood Inc. (HOOD) and Coinbase Global Inc. (COIN) up by 18% and 26%, respectively. Major losers among clean energy stocks included Enphase Energy Inc. (ENPH) and First Solar Inc. (FSLR), down 16.7% and 10.5%, respectively.
Here’s a breakdown of the day’s performance in major US indices and sectors:
Major Indices
| Index | Price | 1-day % chg |
|—|—|—|
| Russell 2000 | 2,388.20 | 5.6% |
| Dow Jones | 43,739.86 | 3.6% |
| Nasdaq 100 | 20,740.09 | 2.5% |
| S&P 500 | 5,922.98 | 2.4% |
Sectors
| Sector | 1-day % chg |
|—|—|
| Financials | 6.0% |
| Energy | 4.0% |
| Industrials | 3.9% |
| Cons. Discretionary | 2.9% |
| Technology | 2.7% |
| Communications | 1.9% |
| Materials | 1.8% |
| Health Care | 0.3% |
| Utilities | -0.7% |
| Cons. Staples | -1.7% |
| Real Estate | -3.3% |
Notable Stock Movers
Several stocks reacted to earnings reports, including:
* Archer-Daniels-Midland Company (ADM), up 2%
* Devon Energy Corp. (DVN), up 1.8%
* Super Micro Computer Inc. (SMCI), down 22%
* CVS Health Corp. (CVS), up 12%
* DBA Sempra (SRE), up 5.8%
* American Electric Power Company Inc. (AEP), down 3%
* Cencora Inc. (COR), up 5.5%
* Howmet Aerospace Inc. (HWM), up 10.7%
Major companies moved in reaction to the election results, including:
* Tesla Inc. (TSLA), up 14.8%
* Capital One Financial Corporation (COF), up 14.4%
* Morgan Stanley (MS), up 13.1%
* Wells Fargo & Company (WFC), up 13.1%
* The Goldman Sachs Group, Inc. (GS), up 12.9%
