n a historic victory, Donald Trump has been re-elected to the White House, sparking a significant rally on Wall Street and driving the US dollar to its highest gain in eight years. Trump’s economic policies are expected to shape a fresh path for the US economy, pushing global markets to respond in turn.
Stock Market Reaction and Dollar Surge
Following Trump’s re-election, the major US stock indexes shot to record highs, especially benefiting sectors like banking. Investors anticipate that Trump’s proposed tax cuts and tariffs will stimulate inflation, which could slow the pace of interest rate cuts. Higher interest rates, in turn, would mean stronger returns on savings and investments in US dollars.
On Wednesday, the dollar saw a notable rise of about 1.65% against major global currencies, including the pound, euro, and yen. The pound dropped 1.16% to its lowest level since August, while the euro fell 1.89%, marking a low not seen since June. European stock markets reflected similar volatility, with Germany’s DAX closing down 1.14% and France’s CAC 40 slipping 0.51%.
Asian markets also saw shifts in response to the US election news. Japan’s Nikkei 225 index ended the session up by 2.6%, while in China, the Shanghai Composite dipped slightly by 0.1%, and Hong Kong’s Hang Seng index closed down by around 2.23%.
Bitcoin Hits All-Time High Amid Trump’s Crypto-Positive Stance
Trump’s re-election comes with promises to make the US a global leader in cryptocurrency, propelling Bitcoin to a record high of $75,999.04—a jump of more than $6,600. The cryptocurrency’s surge reflects investor optimism about a friendlier regulatory environment under Trump, in stark contrast to the Biden administration’s crackdown on the crypto industry.
Trump has even hinted at firing Gary Gensler, the chair of the Securities and Exchange Commission (SEC), who has enforced strict legal action against several crypto firms. In his campaign, Trump stated his vision for the US to become “the bitcoin superpower of the world,” a promise that has captured the attention of crypto investors and enthusiasts.
Global Market Response Reflects Uncertainty and Optimism
While the US stock market soared, other global markets remained uncertain about how Trump’s policies will affect international trade and investment. The UK’s FTSE 100 index initially rose in early trading but closed slightly down. Investors worldwide are weighing Trump’s plans to cut taxes and raise tariffs, anticipating both inflation and a potential increase in interest rates.
Trump’s re-election has set a new tone for the financial markets, with Wall Street, Bitcoin, and the dollar surging as investors await the economic direction he’ll steer over the next term. As markets react to his economic promises, global assets are likely to see continued volatility in the coming days.
