Unlock the White House Watch newsletter for free
A guide to what the 2024 US election means for Washington and the world.
As investors piled up bets on the big winner of Donald Trump’s victory in the US presidential election, US stocks such as Tesla rose early but gave up some of the gains, and Bitcoin hit a new record. The US dollar rose to a four-month high.
The dollar rose more than 0.5% against a basket of markets on Monday, surpassing levels reached the day after last week’s election and hitting its highest since July. The euro fell more than 0.6% to $1.063 during trading, its lowest since April.
In mid-afternoon New York trading, the S&P 500 rebounded around breakeven, while the Nasdaq Composite Index fell 0.3% and Tesla shares rose nearly 7%. The electric car maker has soared since Election Day, pushing its market capitalization past $1 trillion and helping add CEO Elon Musk’s personal net worth by about $32 billion.
“The market is in euphoric territory right now,” said Drew Pettit, director of U.S. equity strategy at Citi. “Optimists are winning by thinking that President Trump is friendly to markets and the economy. They ignore the argument that bad things could happen.”
Bitcoin, which has hit a series of highs since the election, surges 11% to above $85,000 for the first time, as Republicans already have a majority in the Senate and are likely to take control of the House of Representatives. Ta. .
The Trump administration is widely expected to support the crypto industry, and if it takes control of both houses of Congress, it will have significant power to enact favorable legislation.
The total value of the global cryptocurrency market has exceeded $3 trillion for the first time in three years, according to crypto data provider CoinGecko. Cryptocurrency exchange Coinbase rose about 23%, and broker Robinhood rose 10%.
“We can see people wanting to jump on Trump’s trade sooner rather than later,” said Emmanuel Cau, head of European equity strategy at Barclays.
Some content could not be loaded. Please check your internet connection or browser settings.
Mabrouk Chetuan, head of global market strategy at Natixis Investment Managers, said the track record of cryptocurrencies and other so-called “Trump trades” suggests the former president will take a lighter approach to regulation in his second term. This shows that expectations are rising.
“Investors are willing to take risks despite plans to increase protectionism,” he said, referring to President Trump’s plans to significantly increase tariffs on imports into the United States. Ta.
The Republican candidate’s decisive victory prompted traders to price in the president-elect’s promise of tax cuts and tariffs, pushing the dollar higher and triggering a selloff in U.S. Treasuries.
Trading in U.S. Treasuries, which has recouped much of its post-election losses, will be closed for the U.S. Veterans Day holiday.
The Financial Times reported last week that Robert Lighthizer, who served as trade envoy during Trump’s trade war with China during President Trump’s first term, has been asked to serve again. “Any clues about President Trump’s personnel could move the market,” said Jim Reed of Deutsche Bank.
The Mexican peso, which performed poorly in the run-up to the election and was very volatile on voting day, fell 1.2% to 20.41 pesos to the dollar.
Additional reporting by Will Schmidt in New York and Shotaro Tani in London
