Forex

How Did Markets React to Donald Trump’s Election as U.S. President?

Omar Ayoub
Omar Ayoub
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November 7, 2024
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Former President Donald Trump, who represents the Republican Party, won the US presidential elections, after surpassing 270 votes in the Electoral College to become the 47th President of the United States, and returning to the White House after leaving it in 2020. On the other hand, Kamala Harris, former Vice President Joe Biden, lost the presidential race, as she continued the Democratic path after President Joe Biden stepped down from the presidential race, but she failed to achieve what was required and has so far been satisfied with 224 votes.

As for the most prominent swing states, such as Michigan, Wisconsin, and Pennsylvania, Republican candidate Donalp Trump prevailed in all of them to decide the presidential race.

How did the markets receive Donald Trump?

On the market level, when Trump advanced and was close to deciding the outcome, global markets witnessed significant increases in each of the following assets:

  • The US dollar index rose by 1.96%.
  • The Dow Jones index rose by 3.22% to record a new historical peak at the level of 43630.
  • The Nasdaq index rose by 1.85%.
  • The S&P 500 index rose by 2.29% to record a new historical high at 5924.
  • Gold fell about 2.37%.
  • Bitcoin rose by nearly 9% to record a new historical peak at $75,300.

What we can summarize from the market reaction is optimism for the next stage in the economy in general, which prompted the rise of the US dollar and US indices. As for gold, it declined as a result of promises made by Donald Trump during his election campaign to stop wars around the world, according to the analyst’s analysis.

However, the current movements are considered an initial reaction to the election results, and they do not have to be this way during the next term, that is, during the next four years, according to the analyst’s opinion.

Disclaimer: The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell. The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI. Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.