Dow Jones rises 1,500 pts in largest post-election rally in 100 years

US stocks rallied on Wednesday, cheering former President Donald Trump's return to the White House after defeating Democratic rival Kamala Harris.

The Dow Jones Industrial Average rose over 3.55%, or 1,508 points, to a record close of 43,729 points, the highest level in over 100 years.

Likewise, the S&P 500 Index advanced 2.55%, or 146 points, to reach a record 5,929 points, backed by banks (10.65%), financial services (6.15%) and energy (3.5%).

Nasdaq Composite added 2.95%, or 544 points, so that technology stocks closed at a record of 18,983 points.

The small-cap index, the Russell 2000, rose by 5.85%, or 132 points, reaching 2,392 points, marking its largest daily gains ever, amid expectations of benefiting from Trump’s tax-cut and tariff policies.

Tesla stock jumped 14.75%, while shares of JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley rose by 11.55%, 8.45%, 13.1%, and 11.6%, respectively. Meanwhile, Coinbase and MicroStrategy shares increased by 31.1% and 13.15%.

As for the European indices, STOXX Europe 600 fell 0.55% to 506.7 points.

FTSE 100 stabilized at 8,166 points, while DAX 40 decreased 1.15%, to 19,036 points. CAC 40 inched down 0.50% to 7,369 points.

In Japan, Nikkei 225 edged up 2.6%, or 1006 points, to 39,480 points. TOPIX added 1.95% to 2,715 points.

In the oil market, futures contracts for Brent crude for January delivery slumped 0.8%, or $0.61, to $74.92 per barrel, to end five-session winning streak.

Meanwhile, prices of West Texas Intermediate (WTI) crude oil for December delivery retreated 0.4%, or $0.30, to $71.69 per barrel, the first decline in six sessions.

As for gold, futures prices for the yellow metal for December delivery inched down 2.65%, or $73.4 to $2,676 per ounce, the steepest daily decline in five months.

This followed the election of the Republican candidate as the 47th President of the United States, marking an extraordinary return of a former president who had refused to concede defeat four years ago, incited a violent protest at the US Capitol, was criminally convicted, and survived two assassination attempts.

Bitcoin surged to touch its highest level ever, surpassing $76,000. Meanwhile, the dollar index and the yield on 10-year Treasury bonds rose to their highest levels since July, with long-term debt yields recording their fastest increase since 2022.

Markets are now anticipating the outcome of the Federal Reserve meeting tomorrow, Thursday, with expectations of continuing the monetary easing cycle and a 25-basis-point rate cut. Investors are closely watching Jerome Powell’s speech for insights into the future outlook of US monetary policy.