Market Surge: Trump's Election Boosts S&P 500 Futures to Record Highs

Following Republican Donald Trump's claimed victory in the U.S. presidential election, S&P 500 futures reached record highs. The election outcome sparked a broad market rally, with treasury yields and the dollar rising. The Republican party secured the Senate, boosting speculations about economic policy changes under Trump's leadership.

The S&P 500 futures reached unprecedented levels in a broad and sharp rally following Republican candidate Donald Trump's self-declared victory in the U.S. presidential election. Fox News called for Trump over Democrat candidate Kamala Harris, although no other networks confirmed the result at that time.

As election night unfolded, market reactions were swift: 'Trump trades' surged, U.S. Treasury yields jumped, bitcoin reached a new peak, and the U.S. dollar strengthened. 'Markets absolutely crave certainty,' observed Dr. David Allen, manager at Plato Global Alpha Fund, noting that the prospect of Trump's victory was likely accounted for in advance.

By 3:35 a.m. ET, the Dow E-minis surged by 986 points, while S&P 500 E-minis increased by 117.25 points, and Nasdaq E-minis rose by 337.25 points. Small cap Russell 2000 futures hit their highest level since 2022, buoyed by expectations that local stocks might benefit under a potentially lenient regulatory and tax environment.

The Republican party secured control of the Senate and showed strength in the House, potentially leading to a 'clean sweep' that could ease Trump's path for implementing legislation. 'Trump 2.0 is expected to bring rapid policy changes,' remarked Allen, with expectations of immigration restrictions and tax adjustments.

Tesla's shares in Frankfurt rocketed by 13%, in a bet reflecting investor confidence in Elon Musk, who supported Trump's campaign. The prospect of favorable corporate policies under Trump's administration provides a bullish outlook for several sectors.

(With inputs from agencies.)