Dow Jones Today: S&P 500, Nasdaq, Dow Surge to Record Highs As Investors React to Election Results
· InvestopediaStocks surged to record highs Wednesday morning as Republican Donald Trump has been projected to win the U.S. presidential election.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite each hit fresh all-time highs in the opening minutes of trading as investors responded to the surprisingly decisive victory for the former President over his Democratic opponent, Vice President Kamala Harris. The Dow was up 3.1%, or 1300 points, in recent trading, while the S&P 500 and Nasdaq Composite were up 1.8% and 2.1%, respectively.
Tesla (TSLA) was among the big gainers in early trading Wednesday, with shares rising 12%. Tesla CEO Elon Musk has been a vocal supporter of Trump and campaigned alongside the former President in recent weeks.
Shares of companies tied to cryptocurrency were also surging after bitcoin rose to record highs above $75,000 amid optimism that the asset class will get a boost from a Trump presidency. Cyrpto exchange Coinbase (COIN) was up about 20%, while MicroStrategy (MSTR), one of the world's biggest holders of bitcoin, and bitcoin miner MARA Holdings (MARA) were each up more than 10%.
Banking stocks were also up across the board amid expectations that a Trump presidency could lead to regulatory changes and more deal-making. Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), Goldman Sachs (GS) and Morgan Stanley (MS) were all up more than 7%.
Large-cap technology stocks were mostly higher in early trading, led by AI investor favorite Nvidia (NVDA) and Google parent Alphabet (GOOGL), which were up 2.5% and 3%, respectively. Apple (AAPL), Amazon (AMZN) and Broadcom (AVGO) were also gaining ground, while Facebook parent Meta Platforms (META) slid 1%.
Among other noteworthy movers Wednesday morning, shares of CVS Health (CVS) were up 11% after the pharmacy and insurance company released its earnings report. Super Micro Computer (SMCI) shares fell 25% after the struggling server maker provided preliminary results that missed expectations and said it’s unable to predict when it will file its delayed annual report.
Treasury yields, which have been rising in recent weeks as investors have scaled back their expectations for how aggressive the Federal Reserve will be in cutting interest rates, were at 4.46%, up from 4.29% yesterday and at their highest levels since early July. The Fed, which cut rates in September for the first time in four years, is expected to trim its benchmark lending rate by a quarter percentage point at the end of its policy meeting Thursday.
Gold futures were down nearly 3% to around $2,660 an ounce as the U.S. dollar strengthened in the wake of Trump's vicitory.
Solar Stocks Tumble Following Trump's Election Win
2 minutes ago
Several solar stocks including First Solar (FSLR) and Enphase Energy (ENPH) slumped in early trading Wednesday after the presidential election was called in favor of former President Donald Trump.
SunRun (RUN), Plug Power (PLUG), and SolarEdge Technologies (SEDG) shares also declined, with the Invesco Solar (TAN) exchange-traded fund (ETF) down nearly 11%.
In the 16-page campaign platform listed on Trump's website, positions on energy policies include increasing oil, natural gas, and coal production, while reversing Biden administration policies favoring renewable energy.
Trump's ability to reverse legislation like the Inflation Reduction Act, which studies have shown has accelerated the reduction of carbon dioxide emissions, will hinge on how Republicans fare in the remaining races yet to be decided in the House of Representatives. The party has secured a slight majority in the Senate, per the races already called by the Associated Press.
Super Micro Computer Levels to Watch as Stock Plunges Again
53 minutes ago
Shares in Super Micro Computer (SMCI) tumbled in early trading Wednesday after the troubled server maker provided preliminary fiscal first-quarter results late yesterday that came in below Wall Street expectations and said it’s unable to predict when it will file its delayed 2024 annual report.
The stock broke down below a falling wedge pattern late last month on the highest weekly volume since late August, suggesting selling conviction behind the move.
Investors should watch crucial support levels on Super Micro Computer's chart around $23, $12, and $10, while monitoring a key resistance area near $30.
The stock was down 23% at $21.38 in recent trading.
Read the full technical analysis piece here.
What Donald Trump's Victory Means for the Economy
2 hr 8 min ago
Former president Donald Trump's victory in the 2024 presidential election sets the U.S. economy on a path of higher tariffs, lower taxes, and deregulation.
His victory has immediate and longer-term consequences for the U.S. economy. In the short run, the U.S. avoids the uncertainty and disruption that a delayed result could have caused.
In the longer run, Trump will have the chance to implement the vision laid out during his campaign, though his ability to do so will depend on which party controls the House of Representatives, and several of those races have yet to be called.
Read the full article here.
Tesla Jumps as Musk Seen Winning Under Trump Presidency
2 hr 31 min ago
Shares of Tesla (TSLA) were up 12% in recent premarket trading Wednesday on investor bets that the electric vehicle (EV) maker run by Elon Musk will be a major beneficiary of Donald Trump’s return to the presidency.
Tesla CEO Musk, an outspoken Trump backer, is expected to become a prominent adviser to the president.
Tesla's prospects under a Trump presidency are less clear cut, however. Trump isn’t a backer of clean energy, while Tesla has benefited from the Inflation Reduction Act of 2022, signed by President Joe Biden. Tesla also gained from 100% tariffs on Chinese EVs imposed by Biden that protected the EV maker from an onslaught of cars from the Asian nation—which is also a major market for the company.
Wedbush analyst Dan Ives, who has an “outperform” rating on the EV maker’s shares, said Sunday that the possibility of a trade war with China could weigh on the company. Ives did, however, note that a Trump presidency could mark a more welcoming environment for the company’s autonomy initiatives.
Trump Media Stock Surges in Premarket Trading
3 hr 46 min ago
Shares of Trump Media and Technology Group (DJT) jumped in premarket trading with former President Donald Trump set to win re-election to the White House.
The social-media company’s shares were recently trading at around $45, indicating an open more than 30% above Tuesday’s close. The move would extend a jump off September lows below $12 that has been marked by big swings in the company's value.
The company, owner of the Truth Social platform, last night reported its latest quarterly financial results, turning in third-quarter revenue of $1 million and a net loss of a bit more than $19 million. In its press release, executives cited a “legion of retail investors” who own the shares.
The company “continues to explore additional possibilities for growth such as potential mergers and acquisitions with companies that would benefit from Trump Media technology and branding, including in the realm of fintech,” CEO Devin Nunes said in a statement.
Trump is majority owner of the company's shares.
Major Indexes Poised to Skyrocket at Wednesday's Open
4 hr 18 min ago
Futures tied to the Dow Jones Industrial Average were up 3%.
S&P 500 futures were up 2.3%.
Nasdaq 100 futures were up 1.7%.