Markets celebrate Trump 2.0 | Stocks & Bitcoin hit new record highs | S&P 500 posts biggest one-day move after a US election | Bitcoin's IBIT gains US$5 billion in assets
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Stocks and crypto assets roared to their highest levels in history as markets celebrated Donald Trump winning a second term as US president
Investors appeared to be buying everything and anything that’s a risk asset and could bode well from Trump’s pro-business stance, with less regulation and taxes. The three major indices surged to new record highs. The broad S&P 500 $S&P 500 Index (.SPX.US)$ made its biggest one-day move after a US election ever, rising 2.5%. The Nasdaq-100 $NASDAQ 100 Index (.NDX.US)$ rose 2.8%. The Dow Jones 30 $Dow Jones Industrial Average (.DJI.US)$ jones gained 3.6%, or 1,508 points—its best day since 2022. Bitcoin set a record high, moving above $75,800 for the first time in history. Investors piled a massive US$4.6 billion into the most popular Bitcoin ETF, iShares Bitcoin Trust $iShares Bitcoin Trust (IBIT.US)$ over the last four weeks, expecting wider crypto adoption and weaker regulation from a Trump victory. In other news, traders also bought into the US dollar, which made its biggest one-day gain since 2020, as traders bet Trump’s tariffs will benefit corporate America. Meanwhile, investors sold out of fixed-income assets, sending bond yields to 4.43%.
Winners and losers
Winning stocks include Tesla $Tesla (TSLA.US)$ which rose 15%; JP Morgan $JPMorgan (JPM.US)$ , which rose 11%; Goldman Sachs $Goldman Sachs (GS.US)$ rising 13%; and the steel sector, which gained 15%, with Nucor $Nucor (NUE.US)$ up 16%. Losers include gold, falling 3% from its record (pressed by the USD); silver, which fell 4%; and Asian currencies, including the Australian dollar, which fell about 1% to a three-day low of 65.81.
The ASX 200 $S&P/ASX 200 (.XJO.AU)$ futures suggest the market will only rise 0.4% to 8,239, reflecting that Australians need to realize we are now entering a stock pickers' market. Local stocks across AI, technology, steel, and crypto, including Australia’s 12th-largest company, Block $Block (SQ.US)$ $Block Inc (SQ2.AU)$ should bode well. Meanwhile, gold stocks will likely be in the red after gold stumbled.
Can these higher levels of stocks be maintained?
All in all, the question is: will these gains and higher levels be maintained? And are these new trends set in? Probably. There’s room for profit-taking. But for the most part, stocks and risk assets should remain strong over the coming weeks and months, with the Fed expected to cut rates for the second time this year on Friday, ahead of what could be a “gangbuster” Santa Rally. But what’s exciting now is that institutions are expected to put capital back into markets, as markets have the certainty they’ve been awaiting, and we’re entering the strong weeks of the year for stocks. Investors will also question when, not if, some of that $6 trillion on the sidelines will come into markets.
What else to watch ahead?
Watch the US dollar moving up. After the dust settles, given the Fed’s rate cut trajectory, you might expect the US dollar to calm down, which could then allow commodity prices to move up.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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EZ_money : Trump euphoria
I'm happy, but reality comes back. 2 year below the 10 year 
gap is widening 
Jooooohn : I was not ready for the craziness that happened today.