U.S. stocks surge in early trading after presidential election

Nov. 6 (UPI) — The Dow Jones Industrial Average and the S&P 500 hit new highs in early trading on Wednesday as former President Donald Trump claimed victory in Tuesday’s presidential election over Kamala Harris.

The Dow raced up 3%, or 1,263 points in early trading. The S&P and the Nasdaq Composite rose 1.9% as well.

“There’s clarity: We’re not going to see another January 6th event,” Michael Block, CEO at AgentSmyth told CNN. “The mainstream consensus was that we weren’t going to know. And we know.”

The Russell 2000, the small-cap benchmark, also saw a surge of 4.7% after the Trump victory, whose members are probably excited about the former president’s tax cuts and domestic policies.

The stock surge could be seen in futures before Wall Street’s opening bell on Wednesday. Dow Jones futures skyrocketed 1,346 points, or 3.2%, S&P 500 futures rose 2.3% and Nasdaq futures gained 1.7% before the markets opened.

Shares of Tesla, owned by Trump backer Elon Musk, rose 14.5% in premarket trading overnight. Shares for Trump Media leaped 34% in premarket trading Wednesday as Trump declared victory in the election.

Elon Musk and his America PAC were all in for Trump during the election. In the closing weeks of the campaign, America PAC and Musk gave away $1 million a day for registered voters in battleground states who signed a pledge to support the Constitution.

Trump has said he will give Musk a role in cutting government spending in his administration.

Shares of Trump Media shares rose 37% in premarket trading after rising 15% on Tuesday afternoon in anticipation of Election Day.

Bitcoin, which is believed to benefit from Trump’s return to office, increased to a record high of $75,000, its highest level in July. The 10-year Treasury yield also surged 4.43%.

“It looks like a Trump presidential win but also a win for Republicans in House and Senate,” Mark Mobius, chair of the Mobius Emerging Opportunities Fund, told CNBC. “If that happens, you’re going to see the U.S. economy really take off.”