Markets React Rapidly as Trump Secures 47th U.S. Presidency
In the wake of Donald Trump’s victory in the U.S. presidential election, markets responded immediately, with the dollar and Bitcoin surging, and bond yields climbing. The Associated Press confirmed that Trump secured the necessary 270 electoral votes, bolstered by a win in Wisconsin, granting him 10 more votes and confirming his path to become the 47th president.
Dollar and Stocks Soar
According to Rafał Sadoch of mBank Brokerage, the dollar began to climb as soon as early election results pointed toward Trump’s lead. The EUR/USD rate approached 1.07, while futures on the S&P 500 reached new peaks above 5,900 points. This momentum pushed the dollar to 4.06 PLN, the highest level since June. Sadoch noted that a reduced sense of election uncertainty could drive further demand for risk assets, similar to trends seen during Trump’s first term in 2016, where industrial stocks rallied. The Dow Jones index futures rose by over 2%, reflecting this sentiment.
Bitcoin Hits Record High
Bitcoin achieved a historic milestone, surpassing $75,000. This record-breaking performance underscores growing confidence in digital assets amid economic and political changes, particularly the U.S. elections. Binance commented on this achievement, while Elon Musk, a known supporter of digital currencies, is seen as a key ally in Trump’s circle.
Market Analysts Weigh In
Marek Rogalski of Dom Maklerski Bank Ochrony Środowiska called the market reaction “predictable,” noting gains for the dollar, rising bond yields, and Bitcoin’s new all-time high. He highlighted the market’s anticipation of Trump’s policies and ongoing inflationary concerns. The recent 50-basis-point rate cut by the Federal Reserve spurred additional speculation about inflation, and further rate reductions are expected as early as this Thursday.