‘Trump Trade’: Election information leads to biggest 1-day ownership economy earnings in 2 years

The “Trump Trade” was in overdrive Wednesday, making it one for the history books on Wall Street with record finishes for all three major ownership indices.

The Dow Jones Industrial Average rocketed 3.6%, its biggest one day jump since November 2022. The S&P 500 shot up 2.5% while the Nasdaq climbed nearly 3%.

The biggest winners were companies and sectors that investors are betting will advantage from President-elect Trump’s policies.

lender stocks, including JP Morgan Chase (JPM), Wells Fargo (WFC), and lender of America (BAC) rallied on the commitment of lower taxes and less regulation. The tiny-cap Russell 2000 Index (RUT), which includes some regional banks, soared nearly 6%.

It was the biggest surge for the U.S. dollar since 2020, and Carl Icahn, the activist investor and billionaire, said it will navigator to less regulation and more mergers and purchase.

Elon Musk was perhaps the day’s biggest winner. Shares of his Tesla Corporation (TSLA) rocketed nearly 15%. The globe’s wealthiest person has been a staunch Trump proponent, donating more than $130 million toward Trump’s election efforts. In his win talk, the president-elect referred to Musk as a “super genius” and has promised him a role in his administration.

“The biggest positive from a Trump triumph would be for Tesla and Musk,” wrote Dan Ives, elder ownership Research Analyst at Wedbush. “We depend a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/responsibility incentives get pulled. However, for Tesla we view this as a huge positive. Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could provide Musk and Tesla a obvious competitive advantage in a non-EV subsidy surroundings, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players from flooding the US economy,” Ives wrote in a research note.

The cryptocurrency economy also cheered Trump’s profit to the White House. Bitcoin (BTCUSD) notched a record close, climbing above $75,000. Trump has said he wants the U.S. to be the “crypto pool of the earth” and plans to make a “strategic safety net of bitcoin.”

In September, he even launched his own crypto platform, globe Liberty budgetary, a recent enterprise with household members to trade cryptocurrencies.

Donald Trump saw his personal affluence balloon during Wednesday’s ownership economy rally, at least on document. Shares of his Trump Media and Technology throng (DJT), the parent corporation of his social media platform Truth Social, soared more than 30% at the economy’s open but pulled back considerably to complete just 6% higher. Still, that gave the corporation a economy cap of about $7.2 billion, with Trump’s majority stake worth about $4.1 billion.