US benchmark equity indexes closed higher on Wednesday following Donald Trump's victory in the presidential election. Trump's anticipated return to the White House is likely to drive investor interest in emerging tariffs, the labor market repercussions of immigration restrictions, and potential advantages for leading tech companies, experts noted.
The Federal Reserve initiated its two-day monetary policy meeting, with market observers widely predicting that the central bank's Federal Open Market Committee will lower interest rates by 25 basis points on Thursday, as indicated by the CME FedWatch tool. Mortgage applications in the United States decreased for the sixth consecutive week as interest rates on 30-year fixed mortgage types continued to rise, as reported by the Mortgage Bankers Association. In commodities, December West Texas Intermediate crude oil fell by $0.30, settling at $71.69 per barrel.
Similarly, January Brent crude, which serves as the global benchmark, was last seen down by $0.70 at $74.83, coinciding with a stronger dollar amid rising concerns regarding the president-elect's intentions to implement widespread tariffs on US imports. Shares of Tesla surged 15% as election outcomes raised optimism regarding the electric vehicle manufacturer's prospects under Trump's administration.
In contrast, Super Micro Computer saw a decline of 18% following the release of interim financial information for its fiscal first quarter. This drop occurred just after a committee concluded its investigation into accounting firm EY’s concerns about governance, finding no evidence of fraud or misconduct..