Washington DC [US], November 6 : Investors in the US accumulated stocks and betted on the dollar on Wednesday following the historic victory of Donald Trump in the 2024 US presidential elections.
The benchmark S&P 500 index was at 5,881.15 points, up 98.39 points or 1.70 per cent, at the time of filing this report. At one point in the early trade, the index touched 5,905.60 points, its 52-week high.
So far this year, the index rose about 24 per cent.
New York Times reported that the US stock markets, which rose steadily overnight as the votes were counted, surged in early trade Wednesday morning, as the outcome of the election became clear.
According to the same news report, Russell 2000, which tracks smaller companies most exposed to the U.S. economy, jumped about 4 per cent.
Trump in his speech today said his administration would raise tariffs and reduce taxes, hinting that his focus will be to bolster the American economy.
In the immediate future, all eyes will be on the US Federal Reserve monetary policy meeting scheduled for Thursday. The degree of rate cut, if at all, will be closely monitored by investors globally.
In a departure from the recent monetary policy stance by holding interest rates steady in eight straight meetings, the US Federal Reserve announced a steep 50 basis points interest cut in its latest review meeting in September.
It held the policy rate at its current restrictive level since July 2023, in eight straight review meetings. During the COVID-19 pandemic, the interest rates were near zero.
This time too, investors globally are largely certain that the US central bank would cut rates, but they would be looking for the quantum of the cut.