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US stocks rally, dollar and Bitcoin surge as Donald Trump defeats Kamala Harris in presidential race
The stock market in the US was left in a frenzy after Donald Trump won the presidential elections, defeating rival Kamala Harris.
Donald Trump is set to reclaim the White House after securing the mandate on Wednesday.
Trump, in an unexpected political comeback, defeated rival Kamala Harris in the US presidential election, leading to the stock markets across the world rallying, and bitcoin hitting a record high.
Most of the markets across the world rallied as Trump inched closer to victory during ballot counting, while bitcoin hit a record high and the dollar was set for its biggest one-day jump in four years.
Trump's victory led to hopes that his administration would offer tax cuts and support domestic companies, which caused small-cap US stocks to rally beyond expectations.
U.S. S&P and Nasdaq futures jumped more than 2%, and those tracking the small cap Russell 2000 soared 6%. The dollar index rallied 1.4% and was set for its best day since March 2023.
The rally in U.S. stock futures and signs of a decisive result cheered equity markets, with European shares up 0.9% as stock investors put aside worries about the impact of potentially higher tariffs for now.
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The Dow, added more than 1,250 points, while the benchmark index inched closer to the psychologically significant 6,000 level. The small-cap Russell 2000 jumped 4.1% to a nearly three-year high, as domestic-focused stocks expect to benefit from an easier regulatory and tax regime, as well as be less exposed to likely import tariffs.
Bitcoin emerged as the clear winner of the day, climbing to a record high of $75,397 on Wednesday. Overall, bitcoin was 7% on result day, most likely due to Trump's vocal support for cryptocurrencies.
In traditional currencies, the euro was hurt by potential tariffs and the widening differential between U.S. and European rates, and was last down 2% at $1.070, set for its biggest daily fall since 2016's Brexit referendum, outpacing a 1.4% fall in sterling.
VIX, which is a measure of market volatility, dropped to its lowest since September, sinking nearly 5 points. Before the results, the markets remained volatile as investors were uncertain about the new administration and the changes it would bring.
(With inputs from Reuters)
