Wall Street responded enthusiastically to the news of former President Donald Trump’s anticipated return to the White House, with all three major indices reaching historic highs on Wednesday.

The Dow soared nearly 1,300 points, marking a record peak at 43,499. Similarly, the Nasdaq increased by 425 points to 18,860, and the S&P 500 added 103 points, climbing to 5,887 shortly after trading commenced.

This market surge was largely driven by sectors expected to benefit the most from Trump’s policies, particularly those anticipating reduced regulation and potential tax cuts under his leadership.

“There was relief that there was a quick and undisputed election result,” noted David Morrison, a senior market analyst at Trade Nation.

Tesla’s CEO Elon Musk was among the most notable beneficiaries, as his support for Trump appeared to yield immediate financial rewards.

Tesla’s stock climbed 12%, while other electric vehicle companies experienced declines in their stock values.

Shares of Rivian Automotive dropped over 2%, while Nikola’s value also decreased.

Trump’s proposed increase on import tariffs is predicted to favor Tesla, according to Wedbush analysts.

“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,” Wedbush stated in a recent industry report.

Shares of Trump’s media company, which runs his social media site Truth Social, rose by 6% to reach $35.96, despite a reported net loss of $19.2 million for the third quarter, disclosed on Tuesday.

Banking stocks also enjoyed substantial gains, with Wells Fargo surging by 11%, and JPMorgan Chase, the nation’s largest bank, climbing by 9%.

Cryptocurrencies experienced a boost as well, with bitcoin’s price climbing almost 8% to reach an all-time high of $75,345 before settling slightly lower.

Stock in Coinbase, a major crypto trading platform, rose around 12%, as did shares in the trading app Robinhood.

Trump’s campaign promises to enforce tougher penalties for criminals have potential implications for private prison firms, which saw a significant rise in value.

Shares of Geo Group, a major private prison operator, jumped over 26% on Wednesday.

Energy stocks also saw early gains, with Exxon’s shares up by 2.3% and Chevron increasing by 2.5%.

Trump has committed to removing production restrictions on fossil fuel industries and has indicated plans to reduce support for offshore wind energy projects.

In contrast, green energy companies—many of which have thrived under Biden’s Inflation Reduction Act—saw a downturn amid concerns over a second Trump presidency.

Solar panel manufacturer Sunnova Energy fell over 23%, and Plug Power, known for its clean hydrogen technology, saw its stock drop by 14%.

{Matzav.com}