OAN Staff James Meyers
9:56 AM – Wednesday, November 6, 2024
Donald Trump’s election victory was welcomed happily by Wall Street, with all three major benchmarks hitting record highs on Wednesday.
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The Dow increased almost 1,3000 points, which was an all-time high of 43,499, with the Nasdaq rising 425 points, and the S&P 500 increased 103 points, to 5,887, after the opening bell.
The market rally was caused by multiple industries that are likely to be the biggest beneficiaries of a second Trump term, which is expected to loosen regulations while aiming to lower taxes.
“There was relief that there was a quick and undisputed election result,” said David Morrison, senior market analyst, Trade Nation.
One of the biggest beneficiaries was Tesla CEO Elon Musk, whose support for Trump paid immediate dividends.
Shares of Tesla increased 12%, while other electric vehicle companies saw their values drop.
Rivian Automotive was down more than 2% while Nikola also retreated.
Trump has pledged to ramp up tariffs on imports, which would benefit Musk and Tesla, according to analysts at Wedbush.
“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players from flooding the US market over the coming years,” the agency said in an industry note.
The media company behind Trump’s social media platform Truth Social also jumped, increasing 6% to $35.96.
Bank stocks saw robust gains, with Wells Fargo spiking 11% and JPMorgan Chase, the nation’s largest lender surged 9%.
Cryptocurrency also increased on Trump’s embrace of the industry. The price of bitcoin jumped nearly 8% to a record $75,345 before falling back slightly.
Additionally, shares of crypto trading platform Coinbase were up around 12% as was the stock of retail trading app Robinhood.
Furthermore, energy stocks also increased as shares of Exxon went up 2.3% while Chevron gained 2.5%.
Meanwhile, Trump has previously stated that he will lift production restrictions on fossil fuel companies to target offshore wind development.
However, green energy companies who have been dreading a potential second Trump and which benefited greatly from Biden’s Inflation Reduction Act suffered a major drop-off.
Sunnova Energy, the solar panel maker, was down more than 23%, while Plug Power, which specializes in clean hydrogen equipment, saw its shares fall 14%.
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