Wall Street surged on Thursday as the markets hit record highs following both President Donald Trump’s re-election and a widely anticipated interest rate cut by the Federal Reserve.
Stocks are thriving under Trump’s second term, as investor confidence grows in response to his pro-business policies and the Fed’s supportive economic moves, as reported by Reuters.
The Federal Reserve, under Jerome Powell, made a quarter-point interest rate cut, bringing relief to many in the markets. The Fed’s statement emphasized “progress” toward its inflation target, a shift from previous language suggesting only “further progress.”
As inflation ticks closer to the Fed’s 2% goal, many analysts are speculating whether another cut could be on the horizon come December.
Market strategist Ryan Detrick at Carson Group explained, “The Fed didn’t rock the boat. The big question now is will they cut again in December? Our best guess is they do, as inflation continues to improve.”
The rate cut spurred the S&P 500 to rise by 0.6%, while the Nasdaq soared 1.4%, with both hitting all-time highs. Meanwhile, the Dow Jones held steady.
Trump’s promise of tax cuts and deregulation has fueled optimism, with companies expecting reduced costs and a friendly business environment.
Naomi Fink of Nikko Asset Management remarked, “Stocks are rewarding the presumed likelihood of corporate tax cuts,” with Wall Street eyeing growth across various sectors.
In Europe, the STOXX 600 climbed 0.8%, lifted by similar gains in Asian markets. Chinese stocks saw a 3% rally, as investors there bet on potential stimulus.
Notably, Germany’s political scene stirred volatility, with Chancellor Olaf Scholz’s recent firing of Finance Minister Christian Lindner. This political shake-up, leading to the collapse of the coalition, sparked hopes of a more stable German government after potential new elections. The euro saw a lift, rising 0.6% against the dollar.
The bond market, however, isn’t as enthusiastic. With the national debt hitting record levels, bond yields fell slightly after an earlier surge. U.S. Treasury yields dropped, with the 10-year yield down to 4.35% and the 30-year yield slipping to 4.56%.
Across the Atlantic, the Bank of England slashed rates, following a similar move in Sweden and a steady hold by Norway’s Norges Bank. British and Swedish markets saw small boosts, while Norwegian stocks remained stable.
Cryptocurrency is also riding the Trump wave, with Bitcoin soaring to an all-time high of $76,780, in response to Trump’s plan to make the U.S. a “crypto capital.”
Gold edged up to $2,693 per ounce, recovering from a midweek dip. Oil prices reversed recent losses, with Brent crude rising 1% to $75.68 and WTI crude following suit.
Original article below:
U.S. stocks surged on Wednesday after Donald Trump secured victory over Vice President Kamala Harris in one of America’s most heated elections.
As reported by Fox Business [1], the Dow Jones Industrial Average jumped more than 1,000 points as the markets opened, following a pre-market rally that took off once Trump addressed his supporters from his Florida headquarters in the early morning.
Thanking his loyal base, Trump pledged swift action to “turn it around” for the nation.
In historic affirmation of how desperately America has needed Donald Trump back in the White House, the Dow opens +1300 points.
The only joy greater than this will be to watch the meltdown of liberal loonies everywhere. May God bless America and may He protect President Trump! pic.twitter.com/dUFq9ZSCGN [2]— James Woods (@RealJamesWoods) November 6, 2024 [3]
“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,” Trump declared.
With the momentum set by the election, the S&P 500 and Nasdaq Composite joined in the surge, each up more than 2% by midday. Market watchers observed that all three major indices were on track for record-setting closes, a sign of investor optimism under Trump’s expected pro-business policies.
