U.S. stocks soared on Wednesday after Donald Trump’s election win, with the Dow Jones Industrial Average reaching a new record, climbing 1,508 points or 3.6%—the largest single-day gain since 2022. The Trump rally continued into Thursday, with stocks rising further after the Federal Reserve implemented a second consecutive interest rate cut, as anticipated by investors.
By Thursday afternoon, the S&P 500 was up 0.7%, and the Nasdaq composite—bolstered by optimism around tech under Trump—gained another 1.5%. The Dow remained steady with a 0.1% increase by 2:50 p.m. Eastern. All three indexes continue to trend towards record highs.
Major Gains Across Industries
On Wall Street, healthcare giant McKesson helped fuel the rally, surging 11.1% after exceeding profit expectations. Lyft jumped 22.6%, buoyed by strong sales and profits, while Ralph Lauren rose 5.1% thanks to robust performance in Asia and Europe.
Bank stocks saw notable gains following Trump’s win, though JPMorgan Chase dropped 4.4% on Thursday after leading the market rally the previous day. Smaller U.S. stocks, reflected in the Russell 2000 index, dipped 0.4% after a strong Wednesday performance driven by optimism for Trump’s “America First” policies.
Meanwhile, Trump Media & Technology Group, closely associated with the president-elect, soared over 40% on Wednesday before dropping 21.4% Thursday as the initial excitement cooled.
Bond Market and Economic Indicators
In the bond market, the yield on the 10-year Treasury fell to 4.35% from 4.44%, easing after Wednesday’s rise on expectations that Trump’s economic policies could spur growth, increase government debt, and fuel inflation. A report Thursday showed a slight increase in unemployment benefit claims, aligning with economists’ predictions. U.S. workers saw productivity gains over the summer, though they were lower than expected.
Global Markets React
International markets showed mixed responses. London’s FTSE 100 fell 0.3% after the Bank of England lowered interest rates. Japan’s Nikkei 225 slipped 0.3% amid concerns over potential trade tensions under Trump, with analysts citing worries about his tariff strategies.
Meanwhile, Chinese stocks surged, with Hong Kong’s Hang Seng and Shanghai Composite rising 2% and 2.6%, respectively, after China reported its fastest export growth in over two years. While Trump has promised to impose high tariffs on Chinese imports, Zichun Huang of Capital Economics suggests the impact may be delayed until late next year.
