Market Surge Amid Uncertain Election Outcome

U.S. stock futures and the dollar rose as investors speculated on a potential Trump victory in the presidential election. Treasury yields reached four-month highs, betting sites leaned towards Trump, and uncertainty loomed over key battleground states. Markets experienced volatility as results were awaited.


Devdiscourse News Desk | Updated: 06-11-2024 08:53 IST | Created: 06-11-2024 08:53 IST
Market Surge Amid Uncertain Election Outcome
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U.S. stock futures and the dollar climbed in Asian trading as investors speculated that Republican Donald Trump might secure victory in the U.S. presidential election, despite the race being too close to call. Trump initially led over Democrat Kamala Harris, as results filtered in from Republican strongholds while critical battleground states remained undecided.

Treasury yields soared to new heights, with some betting platforms showing a preference for Trump. Futures markets maintained expectations that the Federal Reserve will reduce interest rates by 25 basis points on Thursday. Analysts suggest that Trump's policies on immigration, tax cuts, and tariffs could drive inflation and bond yields up more than Harris' centre-left agenda.

Market dynamics reflected these projections, with Fed fund futures for next year dipping into the red as December weakened by 11 ticks. As preliminary results emerged, Treasury yields observed an uptick, the dollar strengthened, and bitcoin saw gains, resembling a 'Trump trade,' according to Annex Wealth Management's chief economist, Brian Jacobsen.

(With inputs from agencies.)

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