Donald Trump election win turbocharges stocks, cryptocurrency and Trump Media

Donald Trump’s election victory is injecting new energy into the stock market.

Futures for the Dow surged nearly 1,400 points, or 3.2%, pushing the blue-chip index to record highs ahead of Wednesday’s market opening. S&P 500 futures climbed over 2%, with the tech-focused Nasdaq Composite also poised for a strong start.

“As election results come in, U.S. equity futures have been on the rise. We anticipate the S&P 500 could hit 6,600 by the end of 2025, representing nearly a 15% increase from current levels, fueled by expectations of steady U.S. growth, lower interest rates, and ongoing support from artificial intelligence,” stated Solita Marcelli, Chief Investment Officer Americas at UBS Global Wealth Management, in an email. “Potential reductions in corporate taxes or deregulation in the energy and financial sectors under a Trump administration could further enhance this outlook.”

The cryptocurrency market is also experiencing significant gains, with investors speculating that a second Trump term will favor this volatile sector. Bitcoin prices surged nearly 8% to an all-time high of $75,345.00 in early trading before settling around $73,500.

Despite past criticisms of cryptocurrencies, Trump campaigned on the promise to make the U.S. the “crypto capital of the planet” and establish a bitcoin “strategic reserve.”

“Bitcoin was always bound to skyrocket if Trump returned to the White House,” said Russ Mould, investment director at AJ Bell, a UK-based online investment platform. “Trump has expressed his enthusiasm for digital currency, providing cryptocurrency traders with a fresh narrative to heighten their expectations for price movements.”

The Republican Party’s electoral wins on Tuesday, which included regaining control of the Senate, are also benefiting Trump’s financial interests, particularly boosting the stock price of Trump Media & Technology Group. Shares of the company, which owns the social network Truth Social and has a stake valued over $5 billion for Trump, surged nearly 38% to $46.80 prior to market opening.

While markets have reached new heights this year, analysts caution that some of Trump’s proposed policies could revive U.S. inflation, hinder economic growth, and increase national debt. Notably, Trump has suggested imposing tariffs as high as 20% on foreign goods and up to 60% on Chinese imports.

On Thursday, the Federal Reserve is expected to provide its latest assessment of the economy, with analysts predicting a quarter-point cut to the benchmark interest rate. This follows a 0.50 percentage point reduction in September, the central bank’s first cut since 2020.