Stocks Benefiting From Trump Policy

Commodities: Dollar rises, commodity prices fall

Trump's tariff policy will support the dollar at least in the short term and hurt currencies such as the Mexican peso. The dollar index rose by 1.36% to 104.83, the highest since July.

Under the pressure of the dollar's rise, oil, soybeans and copper prices in the Asian market fell by about 1.5% and more than 2%, respectively. Precious metal prices, including gold, remained stable.

Bond market: U.S. bond yields rise

The Federal Reserve began a two-day monetary policy meeting on Wednesday and is expected to cut interest rates by another 25 basis points, but Trump's victory may complicate the outlook for U.S. interest rates. U.S. bonds plummeted, with the U.S. 30-year Treasury yield rising 10 basis points and the U.S. 10-year Treasury yield rising more than 12 basis points, the highest since July.

Crypto Markets: Cryptocurrencies surge

As investors closely watch the results of the U.S. presidential election, the cryptocurrency market appears to be preparing for a Trump victory. The former president is seen as a more favorable candidate for the broader cryptocurrency market beyond Bitcoin because he promised that the U.S. Securities and Exchange Commission would be more friendly to the cryptocurrency market if re-elected.

Dogecoin surged nearly 23% and Shiba Inucoin rose 12%, according to Coin Metrics. Meanwhile, the price of Bitcoin even rose to a new record of $75,000 before narrowing its gains and is currently trading at $73,000.

U.S. stock market

U.S. stock index futures surged on Wednesday after Trump was declared the winner of the 2024 presidential election. As of press time, Dow Jones futures rose 1,117 points, or 2.65%, S&P 500 futures rose 126 points, or 2.19%, and Nasdaq 100 futures rose 336 points, or 1.66%. Other sectors with high correlation to Trump's policies also fluctuated.

Trump concept stocks rise

The share price of Trump's media company, Trump Media & Technology Group (DJT.US), performed strongly in pre-market trading, with the increase further expanded from night trading to 47%, and the share price exceeded $49 per share. At the same time, other Trump concept stocks also rose, with Phunware (PHUN.US) rising nearly 41% and Rumble (RUM.US) rising more than 17%.

It is worth noting that in his speech, Trump also spent a few minutes praising Tesla CEO Elon Musk, who invested about $120 million in Trump's campaign. Trump has said that he will appoint Musk to lead a government efficiency committee. Tesla (TSLA.US) also rose nearly 13% before the market.

Wall Street bank stocks rise

Major U.S. bank stocks rose in pre-market trading. JPMorgan Chase (JPM.US) and Citigroup (C.US) rose more than 5%, Goldman Sachs (GS.US), Bank of America (BAC.US), and Wells Fargo (WFC.US) rose more than 6%.

Given the Republican Party's attitude towards financial deregulation, bank stocks are expected to benefit under Republican control. TD Cowen analyst Jaret Seiberg pointed out that the Consumer Financial Protection Bureau (CFPB)'s deregulation is particularly beneficial to financial companies.

Traditional energy stocks rose

Oil, gas and traditional energy companies are seen as possible beneficiaries of Trump's victory as he vowed to lift restrictions on domestic oil production in the United States. ExxonMobil (XOM.US) rose more than 2%, Chevron (CVX.US) and ConocoPhillips (COP.US) rose nearly 3%, and Devon Energy (DVN.US) and Schlumberger (SLB.US) rose nearly 5%.