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Within a day of Donald Trump emerging victorious in the 2024 elections, Wall Street is seeing record-breaking numbers while the value of the dollar and bitcoin soared to new heights.
Knewz.com has learned that all three major United States stock market indices reached record-breaking levels, according to reports.
The Dow Jones Industrial Average saw the biggest gain among the three, with an increase of 3.6%.
According to reports, the "biggest winners" of the U.S. stock market right now include "financial heavyweights" who stand to profit from regulatory relief – which, in turn, is expected to encourage investments – and private prison stocks.
The latter is expected to turn great profits from Trump's "expected" crackdown on immigration once he takes Office.
Reports have further mentioned that the Trump White House victory has greatly affected the European stock markets on the other hand, which has been attributed to Trump's protectionist trade principles aimed at protecting domestic markets from foreign competition.
It has been reported that, in contrast, European stock markets initially performed well, but gradually plummeted into negative territory. The Frankfurt stock market reportedly fell by 1.1%.
The automobile sector was among the ones worst affected by the German stock market decline, per reports.
Trump's promises to impose trade tariffs on foreign products have resulted in a significant price drop in the shares of German automakers like Volkswagen and BMW, which have a considerable market in the U.S.
To simplify further, a price hike for German-made cars in the U.S. as a result of Trump-imposed tariffs would effectively put them out of competition in the American market—a concern that has deflated investor confidence in the German automobile sector, as evident by their plummeting share prices.
On the other hand, Elon Musk's automotive company Tesla saw share prices jump by 14.8%, reportedly due to Trump's praise and admiration for Musk.
Concerns regarding how Trump's promised policies would affect the global market, as well as the President-elect's proposed tax cuts, became a significant contributing factor to the jump in the dollar's value, according to a recent analysis.
Against the Euro, the dollar went up by nearly 2%, it has been reported.
Stock markets in Asia each responded differently to Trump's victory, with reports mentioning China was "hit by expectations that Trump would impose tariffs on Chinese imports."
Regarding the record-breaking numbers at the Wall Street stock market, experts commented that it was a direct effect of Trump winning his re-election bid, as he is perceived as a "business-friendly" President.
"The rationale behind the US stock market rally is that Trump is seen as business-friendly and will be able to pass his tax cuts through easily without much resistance from the Democrats who have lost control of the Senate," City Index and FOREX.com analyst Fawad Razaqzada said in a statement.
Aaron Clark, equity portfolio manager at GW&K Investment Management, shared a similar sentiment regarding the matter, saying:
"The reaction today is just the fact that it was a clean sweep … winning the election, the electoral vote, the popular vote, the Senate, and looking like they'll retain the House as well... The market's clearly on a sugar high."
Experts further believe that the fact that Trump's 2024 victory was a clear and decisive one contributed greatly to the current state of the U.S. stock market as well.
"A swift and decisive outcome reduces the risks of protracted uncertainty, political violence, recession risks, and even geopolitical spillover that could have accompanied presidential election outcome uncertainty," Jason Schenker of Prestige Economics was quoted as saying.
It is worth noting that the price of Bitcoin saw a sharp hike of $6000, reaching record-breaking heights of over $76,000. Prior to the latest hike, the highest recorded Bitcoin price was in March, when it reached $74,000.