Dow surged 1264, advancers over decliners a very modest 4-3 & NAZ jumped 361. The MLP index advanced 5+ to about 291 & the REIT index tumbled 11+ to the 415s. Junk bond funds crawled a little higher & Treasuries were very heavily sold, taking yields substantially higher. Oil drawled higher in the 72s & gold tumbled 66 to 2689.
Dow Jones Industrials
U.S. stocks soared as Donald Trump defeated VP Kamala Harris in one of the most contentious elections in U.S. history. The Dow jumped over 1000 at the opening bell, continuing the climb seen in the pre-market session after the pres elect took the stage at his headquarters in Florida early morning, thanking his supporters & promising to restore the country. "We're going to pay you back. We are going to do the best job. We're going to turn it around. It's got to be turned around, and it's got to be turned around fast. And we're going to turn it around" said Trump. All 3 of the major stock market averages are on pace for a record close. Trump invited JD Vance, the presumptive new VP, to the podium to speak, & he spoke about reviving the US economy, a top election issue. "We're going to lead the greatest economic comeback in American history under Donald Trump's leadership," Vance said.
Trump's White House win sends Dow up 1,000 points
Treasury yields surged as Donald Trump won the US presidential election, with a Rep sweep in Congress possibly also in the cards. The 10-year Treasury yield jumped 17 basis points to trade at 4.461%, hitting its highest level since Jul as investors bet a Trump presidency would increase economic growth, along with fiscal spending. The yield on the 2-year Treasury was up by more than 7 basis points to 4.278%, reaching its highest level since Jul 31. 1 basis point is equivalent to 0.01% & yields & prices have an inverted relationship. The projection is Reps are expected to regain majority control of the Senate in 2025. The House was still up for grabs, leaving open the possibility of a Rep sweep. The general thinking ahead of the election was that bond yields could see a big pop in the event of a Trump win, & they could surge in a Rep sweep, where the party captures control of Congress & the White House. That is because Reps may introduce tax cuts & steep tariffs, moves that could spark economic growth, but also widen the fiscal deficit & reignite inflation.
10-year Treasury yield posts huge leap to 4.46% on Trump win, possible GOP Congress sweep
European officials have been quick to congratulate Donald Trump after he defeated his Dem rival Kamala Harris to return to the White House, despite a stark realization that renewed economic warfare could be just around the corner. European diplomats & their respective leaders have been preparing for the eventuality of a Trump victory for more than 12 months, placing a growing focus on policies that could protect the European economy from potential trade disputes. Some European officials woke up to election results today “not wanting to believe” them, several sources said. “I am seeing it, [and] not wanting to believe,” said 1 EU official, who did not want to be named. “But I am not as shocked as last time.” Many European leaders did not enjoy Trump's style of confrontational leadership during his first presidency, & there were several moments of tension with the former White House leader. As a result, many in Brussels celebrated the victory of Joe Biden in 2020, hoping for a better engagement.
Europe praises Trump’s victory amid wider fears of an economic nightmare
Stocks surged as investors digested Donald Trump's victory in the US presidential election. Outside of the presidential election, Reps have also flipped the Senate. Control of the House of Representatives remains unclear (& likely will be for days or even weeks). Trump's policies had been viewed by some experts as more positive for the financial sector. Today the FOMC meeting begins & they will have a lot to talk about!!!
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