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

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%.

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.