UNITED KINGDOM – Wall Street rallied into record territory, the dollar soared and bitcoin scaled a new peak Wednesday as the world gears up for another Donald Trump presidency. The Republican candidate made a stunning political comeback as he defeated Vice President Kamala Harris to return to the White House, four years after losing it to Joe Biden. The Dow jumped three percent while the S&P 500 and Nasdaq Composite added two percent in early deals. “The rationale behind the US stock market rally is that Trump is seen as business-friendly and will be able to pass his tax cuts through easily without much resistance from the Democrats who have lost control of the Senate,” said City Index and FOREX.com analyst Fawad Razaqzada. Briefing.com analyst Patrick O’Hare said Trump’s policies “which feature lower tax rates and deregulation among the cornerstones, are being heralded by the stock market as pro-growth policies that will be a boon for corporate profit growth”.

But in a sign that investors are also nervous about the impact of Trump’s protectionist policies, European stock markets gave up strong earlier gains to slip into the red in the afternoon.

Asian stocks diverged, with Chinese stocks hit by expectations that Trump would impose tariffs on Chinese imports. Market focus was also on plans to stimulate China’s economy, the world’s second biggest after the United States. Trump tax cuts, while good for corporate profits, are seen as inflationary and therefore leading to fewer interest-rate cuts by the Federal Reserve in the coming months. That boosted the dollar against main rivals, with the greenback up around two percent against the euro. (Jamaicaobserver)

Photo: Trader Jonathan Mueller wears a Trump hat as he works on the floor of the New York Stock Exchange (NYSE) at the opening bell on November 6, 2024. (AFP)…[+]