Wall Street beat most predictions Wednesday responding with a net increase in Donald Trump’s election to the US presidency, to the point of almost breaking a record: the Dow Jones took 1.40% and the Nasdaq 1.11 %.
According to final results, the index Featured Dow Jones Industrial Average gained 256.95 points 589.69 18 points to fifty points of its record closing and the Nasdaq, dominated by technology, 57.58 points 5251.07 points. The broader S & P 500 was up 23.70 points, or 1.11%, to 2163.26 points.
“This is a particularly unexpected reaction to the Exchange (…) trying to digest the ramifications of the unexpected victory of Trump,” acknowledged David Levy, First Republic Advisors.
Since Tuesday evening and the end of the US elections, markets evolve on “roller coaster,” he recalled.
Global squares, on which investors showed a broad preference for the idea of a victory for Democrat Hillary Clinton, were first dropped materializes as the unexpected election of Mr. Trump, but Wall Street quickly found momentum after some hesitation at the opening and then has only accelerated.
“We are now set … While many investors are not satisfied with the winner,” summarized Sam Stovall. “This is a good opportunity to purchase. Many people had recommended to take advantage of falling. ”
The reversal was sensitive to other assets. Traditional safe haven, the bond market collapsed after jumping into the night to 9:20 p.m. EDT, the yield on 10-year Treasury jumped to 2.071% against 1.858% Wednesday night, and that good for 30 years at 2.862% , against 2.619% previously.
Conversely, after unscrewing, the dollar rebounded against the euro, showing himself to 1.0917 dollars per euro for 1.1020 dollars the previous evening.
Among the elements likely to reassure investors that digest also a Republican victory in parliamentary organized in parallel, observers cited the willingness of Mr. Trump to invest in infrastructure and the remoteness of the danger of a Clinton presidency for particular sectors such as pharmaceutical companies.
“Now the stock market trying to see who the winners and losers and that will continue in the upcoming sessions,” said Mr. Levy. “But for now, this is a very positive reaction.”