Stocks roared out of the gate Wednesday morning following news that former President Trump has secured a second term in the White House and Republicans won a majority in the Senate.
The Dow Jones Industrial Average rose 1,341 points, or about 3.1 percent, as the market opened, reaching a record high. It was the first time it has jumped more than 1,000 points in a single day since November 2022.
The S&P 500 also gained 1.9 percent, and the Nasdaq climbed 1.8 percent.
Despite concern from big business about Trump’s plan to impose blanket tariffs on imports to the U.S., Wall Street is anticipating tax cuts and deregulation during a second Trump presidency.
During his first term, Trump’s signature 2017 tax plan slashed the corporate tax rate to 21 percent. He floated further cuts to the corporate tax rate during a Business Roundtable event in June with some of the country’s most powerful executives.
With the Senate flipped to Republican control, it’s looking more likely that Trump will be able to implement his vision in 2025, when many of the existing provisions are set to expire.
“Winning the Senate could have significant implications for parts of the Trump agenda, especially extending expiring tax cuts, because Senate Republicans could use the reconciliation process to circumvent the Senate’s filibuster. But that’s only relevant if Republicans keep the House,” said Brian Gardner, chief Washington policy strategist at investment bank Stifel.
Several House races have yet to be called, and a majority has not been determined as of market open. Experts say it could take several days to determine which party will control the House.
Suzanne Clark, president and CEO of the U.S. Chamber of Commerce, the lobbying giant that represents the interests of big business in Washington, congratulated the president-elect and said the organization looks forward to working with both Republicans and Democrats in Congress to “preserve pro-growth tax policies, bring regulatory relief to business, harness the power of AI to drive American innovation, and expand an all-of-the-above energy production policy.”
The definitive early call also brought relief for investors, who waited days in 2020 for the presidential race to be called.
“The fact that we know the outcome of the race will be welcome by investors since the country will not have to endure a repeat of the 2020 process. We expect the equity markets will see a Trump win as pro-economic growth and will rally on the news,” Gardner said.
The price of one bitcoin also reached a record high Wednesday morning, eclipsing $73,881 before markets opened Wednesday. After bashing the technology throughout his first term, Trump switched his stance on cryptocurrency during his 2024 campaign and sought to align himself with the increasingly powerful industry.
Shares of Trump Media & Technology Group, the company behind Trump’s Truth Social platform, also jumped more than 24 percent when markets opened. While shares remain below the high of $79.38 when the company made its Nasdaq debut in March, they have rebounded significantly from a low of $11.75.
Tesla shares also surged nearly 15 percent Wednesday morning. The company’s founder, Elon Musk, spent election night with Trump after pouring tens of millions into his pro-Trump super PAC America PAC, which spent $86.8 million boosting Trump and $57.9 million attacking Vice President Kamala Harris in battleground states.
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