(PatriotNews.net) – Stock futures shot up and Treasury yields spiked sharply after Donald Trump won the presidential election. Traders hurried to adjust their investments, expecting that Trump’s plans would impact taxes, trade, and business regulations. The anticipation of new tariffs, tax cuts, and energy policy changes drove many investors to get ahead of the game. Early trading saw all three main U.S. indexes rise. S&P 500 futures climbed over 2 percent, while Dow Jones futures rose nearly 3 percent, and Nasdaq futures gained 1.3 percent. Meanwhile, the Russell 2000 index—which measures smaller, more U.S.-focused companies—surged almost 6 percent, showing optimism about growth at home.
This jump in stocks felt familiar to what happened in 2016 when Trump first won. In the bond market, a selloff pushed the yield on the 10-year U.S. Treasury above 4.46 percent, up from Tuesday’s close of 4.29 percent. Bond yields move opposite to bond prices, and they often go up when investors expect faster economic growth. The “Trump trade” wasn’t just a U.S. phenomenon, though. European stocks also rose, with indexes in Germany, France, and the U.K. all moving up.
In Asia, market reactions were more mixed. Japanese stocks were strong, with the Nikkei 225 index going up 2.6 percent. But in China, the reaction wasn’t as positive. The CSI 300, a major Chinese stock index, slipped slightly by 0.5 percent, while the Hang Seng Index, which tracks companies listed in Hong Kong, dropped 2.3 percent.
Overall, the markets are signaling that investors expect big economic changes from Trump’s policies. Some think these changes could bring faster growth, especially in industries focused on the U.S.
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