Global markets soared on Wednesday, November 6th, as Donald Trump’s victory in the 2024 US presidential election fueled investor optimism. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed at record highs, propelled by anticipation of lower taxes, deregulation, and Trump’s pro-business stance. This bullish sentiment was further amplified by Bitcoin, which also reached new all-time highs.
Tesla shares surged, driven by CEO Elon Musk’s public endorsement of Trump, while gains in Trump Media & Technology Group reflected market confidence in the company’s potential under Trump’s presidency.
However, the jubilant market mood was tempered by rising Treasury yields. Investors reacted to the prospect of increased tariffs under Trump’s administration, anticipating potential inflationary pressures and a widening US budget deficit.
Economic data released on Wednesday painted a mixed picture. US mortgage applications dropped by 10.8% last week, indicating a slowdown in the housing market. Meanwhile, crude oil inventories rose by 2.149 million barrels, exceeding forecasts and suggesting a potential dip in demand.
Most S&P 500 sectors closed in the green, with consumer discretionary, industrials, and financials leading the charge. Consumer staples and real estate, however, lagged behind.
The Dow Jones Industrial Average closed at 43,729.93, gaining 3.57% on the day. The S&P 500 rose by 2.53% to end at 5,929.04, while the Nasdaq Composite soared 2.95%, finishing at 18,983.47.
Asia Markets Today
On Thursday, Asian markets presented a more mixed picture. Japan’s Nikkei 225 declined by 0.09%, ending the session at 39,394.00, with losses in the Fishery, Marine Transport, and Food sectors. Australia’s S&P/ASX 200, however, gained 0.33% to close at 8,226.30, fueled by gains in the Energy, Industrials, and Financials sectors.
India’s Nifty 50 traded lower by 1.18% at 24,194.60, while the Nifty 500 was down 1.02% at 22,796.95, with losses primarily in the Metals, Power, and Real Estate sectors.
China’s markets performed well, with the Shanghai Composite gaining 2.57% to close at 3,470.66. The Shenzhen CSI 300 soared even higher, gaining 3.02% to end at 4,145.70. Hong Kong’s Hang Seng index rose by 2.02% to close at 20,953.34.
Eurozone at 05.45 AM ET
European markets showed a positive sentiment, with the European STOXX 50 index up 0.67%. Germany’s DAX gained 1.27%, France’s CAC rose 0.58%, and the UK’s FTSE 100 traded higher by 0.08%.
Commodities at 05.45 AM ET
Crude oil prices took a dip, with WTI trading lower by 0.88% at $71.06/bbl, and Brent down 0.71% at $74.41/bbl. Natural gas slid 0.07% to $2.745.
Precious metals also saw a downward trend, with gold trading lower by 0.08% at $2,674.70, and silver falling 0.29% to $31.245. Copper, however, gained 2.28% to $4.3430.
U.S. Futures at 05.45 AM ET
US futures pointed towards a positive opening, with Dow futures climbing 0.22%, S&P 500 futures up 0.19%, and Nasdaq 100 futures rising 0.21%.
Forex at 05.45 AM ET
The US dollar index eased slightly, declining 0.19% to 104.89. The USD/JPY was down 0.40% to 154.00, and the USD/AUD fell 0.89% to 1.5086.
Overall, global stocks saw an upward trajectory, driven by optimism surrounding potential US fiscal expansion under Trump’s presidency and anticipated rate cuts from the Fed and other central banks. While the US Treasury yields increased, the dollar softened slightly following its surge on Wednesday.
