US equity futures experienced a significant surge before market opening on Wednesday, following the election victory of Donald Trump over Kamala Harris in the US presidential election. Futures for the Dow Jones Industrial Average rose by an impressive 3.1%, while S&P 500 futures climbed 2.3% and Nasdaq futures increased by 1.8%.
This notable performance in the equity markets is a reflection of investor sentiment in the wake of Trump's election, who secured at least 277 Electoral College votes, exceeding the required 270. Oil prices also faced a downturn, with the global benchmark North Sea Brent crude witnessing a 2% drop to $74.00 per barrel.
Similarly, US West Texas Intermediate crude fell by 2.3% to reach $70.34 per barrel. Meanwhile, the Federal Open Market Committee initiated a two-day policy-setting meeting on Wednesday. Analyzing global markets, Japan's Nikkei index closed 2.6% higher, contrasting with Hong Kong's Hang Seng, which ended 2.2% lower, and China's Shanghai Composite, which saw a minor decline of 0.09%.
In Europe's early afternoon trading, the UK's FTSE 100 experienced a 0.6% increase, while Germany's DAX index saw a slight rise of 0.1%. In the equities sector, shares of Tesla experienced a remarkable uptick of 12% before the bell, spurred by Trump's election win, bolstered by the support of CEO Elon Musk, a known Trump advocate.
Additionally, shares of Trump Media & Technology Group surged by 25%. On the flip side, shares of Exact Sciences plummeted by 17% as the company reported a switch to a net loss in Q3 and consequently lowered its sales outlook for the full year of 2024. Furthermore, shares of Tango Therapeutics faced a significant decline of 34% following the announcement of a wider net loss in Q3..