In parallel with Donald Trump's victory, the S&P 500 recorded the biggest performance in its history on a post-election day. Let's take a closer look at these numbers.
The S&P 500 breaks records after the election of Donald Trump
With the election of Donald Trump, the financial markets were able to remove a significant part of the ambient doubt that was hovering. In response to this event, the American benchmark index, the S&P 500, posted the best performance in its history after the results of a presidential election. And for good reason, it increased by 2.6%, thereby dethroning the previous record of 2020:
Figure 1: Historical performance of the S&P 500 after a US presidential election
From now on, the famous index is valued at $5,929, thus establishing a new all-time high after that of October 17:
Figure 2: S&P 500 price in daily data
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Among all the companies that make up the index, some perform better than others. This is especially true for Teslawhose CEO Elon Musk has positioned himself as an important supporter of Donald Trump throughout this electoral campaign. During the day of Wednesday, the manufacturer of electric vehicles therefore saw its stock appreciate on the stock market by 14.75%.
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The dollar is also soaring
David Bahnsen, chief investment officer of The Bahnsen Group, told Bloomberg that this rise in the stock market could be supported by hopes of tax cutsand deregulation:
For now, investor sentiment is supportive of growth, deregulation and markets. It is also assumed that M&A activity will pick up and that further tax cuts are coming or existing cuts will be extended. This creates a favorable context for actions.
At the same time, the dollar experienced its strongest one-day appreciation since 2022. Indeed, for example, the EUR/USD price fell by more than 1.84% during the day on Wednesday. At the time of writing these lines, 1 euro is therefore worth approximately 1.077 dollars:
Figure 3: EUR/USD price in daily data
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As we saw yesterday, the cryptocurrency market also received the results of this election very favorably. Indeed, the total market capitalization is currently increasing by 7.8% over the last 24 hours.
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Sources: Bloomberg, TradingView
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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