Wall Street zooms: US stocks salute Trump’s return, check out top gainers here

Trump card in Wall Street: Donald Trump's recent electoral victory has triggered a surge across US financial markets, driving stock indexes to all-time highs and strengning dollar, while Treasury prices dropped amid investor expectations of tax cuts and tariffs under his ministration. 

benchmark S&P 500 rose 2.51 per cent to a record high, with table gains in small-cap stocks and banking shares poised to benefit from Trump’s anticipated regulatory rollbacks. Bitcoin also reached new highs, while dollar climbed to its strongest level in over four months, contrasting with a steep decline in Treasury prices.

" election results are influencing markets across board," said Paul Christopher, he of global investment strategy at Wells Fargo Investment Institute. Trump's pledges to cut taxes, increase tariffs, and reduce regulatory burdens spurred investors toward assets expected to gain under such policies.

Markets sensitive to higher tariffs felt impact immediately, with Mexican peso slumping to a two-year low and euro marking its largest one-day drop since 2020. Currency tring volumes surged, with CME Group reporting record levels in offshore Chinese renminbi and Mexican peso futures.

Confidence in "Trump tres" was furr bolstered by Republicans securing control of Senate, and investors erly awaited House results. A Republican-controlled Congress could smooth pass of Trump's policy nda, with implications for taxes, tre, and global markets.

Interest Rates Expected to Climb

Investors sold off US Treasuries, partly in response to concerns that Trump's proposed tariffs could stoke inflation, along with potential spending measures that may raise federal debt levels. 10-year Treasury yield climbed to 4.48 per cent, a four-month high, before easing slightly.

"If he fully enacts his nda, we could see larger deficits, deeper tax cuts, and higher inflation from tariffs," ted David Kelly, JPMorgan Asset Manment's chief global strategist. "se factors could push long-term interest rates higher."

Tesla shares saw a significant boost of 14.75 per cent, with support from Elon Musk , a Trump ally. Small-cap stocks on Russell 2000 index rose nearly 6 per cent, while bank stocks in S&P 500 index surged by 10.68 per cent. Bitcoin also hit a record high, driven by optimism for looser cryptocurrency regulations.

Investor activity spiked early on platforms like Robinhood, which reported its busiest overnight session to date. Tring volumes were 11 times higher than usual, with investors flocking to assets potentially benefiting from a Trump ministration, including companies associated with Trump and prominent supporters like Musk.

Trump's win, compared to delayed 2020 election results, provided markets with quicker clarity, removing a significant uncertainty. " ecomy is entering next ministration on strong footing, and stock market reflects resolution of this uncertainty," said Kurt Reiman, UBS Wealth Manment's fixed income Americas he and leer of ElectionWatch team.

Attention w shifts to Federal Reserve’s upcoming decision on monetary policy. Analysts anticipate Trump's policies could prompt Fed to slow down its pace of rate cuts, with mura ecomists forecasting only one rate cut in 2025 after an expected inflationary impact from tariffs subsides.

(With Reuters inputs)