US shares and Bitcoin hit record highs following the surprise re-election of Donald Trump, sending shockwaves through global markets. The re-election, marking a pivotal moment in US political history, ignited a surge in investor optimism, driving Wall Street’s major indexes to new peaks.
Stocks and the Dollar Skyrocket
Wall Street saw an immediate rally, with the major US stock indexes, including the S&P 500 and Dow Jones, soaring to historic highs. Banks were among the top performers, reflecting market confidence in Trump’s economic policies. The US dollar surged by 1.65% against a range of global currencies, including the euro, pound, and yen. In the wake of Trump’s victory, the British pound fell to its lowest point since August, losing 1.16% against the dollar. Meanwhile, the euro plunged 1.89%, and the Japanese Nikkei 225 index closed with a 2.6% gain.
Bitcoin Hits New Heights
Bitcoin also achieved an all-time high, surpassing $75,000, as traders reacted to Trump’s vocal support of cryptocurrency. During his campaign, Trump vowed to make the US a “bitcoin superpower,” setting his stance apart from the Biden administration’s crackdown on the crypto industry. Bitcoin’s price surge comes as Trump promised to cut regulations and foster a more crypto-friendly environment, including possibly replacing SEC Chair Gary Gensler, a vocal critic of the digital currency.
Musk’s Support and Tesla’s Boost
Tesla, led by outspoken crypto proponent Elon Musk, also benefited from Trump’s victory. Tesla shares spiked by more than 14%, reaching a two-year high. Musk, a major supporter of Trump, has long advocated for cryptocurrencies, even investing $1.5 billion in Bitcoin in 2021. With Trump’s plans to put Musk in charge of auditing government waste, Tesla’s gains are a further reflection of the market’s optimism.
Economic Concerns and Global Repercussions
Despite the positive stock market performance, concerns loom over Trump’s proposed tariffs and trade policies. Economists warn that his aggressive stance on tariffs, particularly with China, could lead to global trade disruptions. UK Chancellor Rachel Reeves and other leaders have expressed apprehension, noting that the UK could face a slowdown in growth due to higher tariffs.
As global markets adjust to Trump’s second term, investors are focused on the Federal Reserve’s upcoming interest rate decisions. The Fed’s response to the economic landscape will play a key role in shaping market expectations for the coming months.
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