The Dow Jones Industrial Average surged more than 1,300 points in early trading Wednesday as investors registered enthusiasm for a second Donald Trump presidency.
The Nasdaq and S&P 500 were both up more modestly, rising 2%.
Bond markets fell as money shifted into so-called “Trump trades,” predominantly in stocks but also in cryptocurrencies. Shares in banks, private prisons and gun manufacturers all posted gains heading into the trading day.
Trump became the first person in more than a century to return to the White House after an absence following his first term, defeating Vice President Kamala Harris.
One especially volatile stock, Trump Media & Technology Group (parent of Truth Social) continued its wild swings early Wednesday, posting high-single-digit gains on nearly twice its normal volume.
It will be two months before Trump’s new term officially begins, but on the campaign trail he has promised to lower taxes and also impose broad tariffs on a range of goods. While the Biden Administration has continued some of the tariffs Trump implemented during his first term, many economists have said the new and expanded tariffs could have a negative impact on U.S. consumers and the economy.
Inflation was a major component of Trump’s defeat of Harris, with many voters opting for a change after grueling years of Covid and then the worst increase in prices for consumer goods in more than four decades.
One prominent business figure, Elon Musk, also played a role in re-electing Trump. The CEO of Tesla and owner of Twitter, now X, threw his full support behind Trump, pouring hundreds of millions into the effort to return him to the White House.