US benchmark equity indexes concluded higher Wednesday following Donald Trump’s victory in the presidential election. Investors are keenly observing the implications of potential new tariffs, shifts in the labor market stemming from immigration policies, and possible advantages for leading technology companies, as noted by analysts. The Federal Reserve initiated a two-day monetary policy meeting, with market expectations leaning toward a 25 basis point reduction in interest rates on Thursday, per the CME FedWatch tool. In a concerning trend for the housing market, mortgage applications in the US have decreased for six consecutive weeks, driven by rising rates on 30-year fixed mortgages, as reported by the Mortgage Bankers Association. In the energy sector, December West Texas Intermediate crude oil prices dipped $0.30, settling at $71.69 per barrel, while the January Brent crude, the international standard, was last recorded down $0.70 at $74.83.
This decline was mirrored by a strengthening dollar and looming fears over the president-elect's proposal for comprehensive tariffs on US imports. Notably, Tesla shares surged 15% in response to the election results, leading to speculation that the electric vehicle manufacturer will significantly benefit from Trump's administration. Conversely, Super Micro Computer experienced an 18% drop after releasing interim financial data for fiscal Q1.
This came on the heels of a committee investigation into governance issues raised by accounting firm EY, which concluded that there was no evidence of fraud or misconduct..