How the US Stock Market Is Reacting to Trump Win

As Donald Trump inched closer to claiming the US presidency for a second time Tuesday night, the stock market responded by climbing quickly, with all three major indices up by more than 1%.

A Trump presidency is expected to be good for many tech businesses, so of course the tech-centric Nasdaq Composite is leading the stock indices with a gain of 1.43%. The S&P 500 gained 1.23%, and the Dow Jones was up by 1.02%, or 427 points.

The market has not opened yet for Wednesday at the time of this writing, but now that Trump has secured the presidency, we do expect the stock market to move quickly. The stagnation we saw yesterday will likely continue for many stocks that investors will be unsure of in the new political climate, but many stocks should do very well in the short term as investors anticipate increasing profits.

During his last presidency, Trump was known as a friend of businesses, especially American businesses. He has made significant strides toward appealing to the tech sector during this year’s campaign, with promised support for cryptocurrency and a strong partnership with Tesla CEO Elon Musk.

Trump famously pulled the US out of the Paris climate agreement during his last term, saying that the agreement would have been bad business for the country. He is likely to have a business-focused presidency again, thanks to his long history in the business world.

Expectations for Stock Market This Week

As the election news spreads, we anticipate a surge in tech stocks in particular, and we may see movement from Nvidia, Microsoft, Apple, and Google in response to the new administration. We should also see cryptocurrency-related stocks climb, especially MicroStrategy.

There will be a lot of uncertainty still in the stock market, as many companies and investors are not sure what Trump will do as he steps into the role of President again. They do not know which policies he will focus on first and how soon the stocks will be affected by his presidency.

This is a risky time to invest in most stocks, but the standby ones that have done well this year and over the past few years should be safe bets. With the Boeing strike over, we expect to see some small increase from that stock as the company recovers.