US shares surged to new record highs, and Bitcoin also reached an all-time peak, following Donald Trump’s re-election win in a closely watched and historic presidential race. Investors flocked to stocks and cryptocurrencies, buoyed by Trump’s economic policies that promised tax cuts and a tough stance on global trade.
Wall Street Celebrates Trump’s Victory
The major US stock indexes saw significant gains, with banks leading the charge. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq all posted impressive gains, pushing investor sentiment to unprecedented levels. Meanwhile, the US dollar strengthened by around 1.65%, marking its biggest gain in eight years. The pound, euro, and yen all fell sharply against the dollar, with the British pound plunging to its lowest level since August.
Bitcoin Hits $75,999, Breaking Records
In a move that surprised many, Bitcoin soared above $75,000, hitting a record high of $75,999.04. Trump’s vocal support for cryptocurrencies, particularly Bitcoin, stood in stark contrast to the Biden administration’s crackdown on crypto businesses. During his campaign, Trump vowed to make the US a “bitcoin superpower,” attracting further attention from investors. Tesla’s stock also jumped by 14%, as Elon Musk, a known cryptocurrency supporter, continues his backing of Trump’s economic policies.
Economic Outlook and Trade Concerns
While the surge in stocks and crypto is good news for investors, some economists warn of potential long-term risks. Trump’s promises to raise tariffs, especially on China, and his protectionist stance on global trade could lead to economic shocks. The UK, in particular, is expected to face challenges if Trump’s policies are enacted, potentially stalling growth.
Concerns also loom over Trump’s isolationist foreign policy, particularly in regard to Taiwan, a key producer of semiconductor chips. Analysts fear that trade disruptions could destabilize global supply chains and affect technology industries worldwide.
Looking Ahead
The global economic landscape could shift significantly under Trump’s leadership, and this week’s Federal Reserve decision on interest rates will be a critical indicator of future market trends. Investors are closely watching how the Fed, led by Jerome Powell, will respond to the current surge in inflation and market volatility.
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