US equity indexes reached new intraday record highs, government bond yields surged, and the dollar strengthened after Republican presidential nominee Donald Trump defeated his Democratic counterpart Kamala Harris in Tuesday's vote. The Dow Jones Industrial Average soared 3.2% to 43,573.7, while the Nasdaq Composite increased by 2.4% to 18,879.2, and the S&P 500 rose 2.1% to 5,903.5.
Financials, energy, and industrials led the top gainers, contrasting with declines in real estate, utilities, and consumer staples. Trump marks the second individual to secure the US presidency in non-consecutive terms following Grover Cleveland's re-election in 1892. The Republican Party is drawing closer to achieving a clean sweep of Congress after successfully reclaiming the Senate. The US dollar strengthened against its major trading partners in the wake of the electoral results, as demonstrated by a 1.6% increase in the US Dollar index to 105.12.
This movement arrives just before the Federal Open Market Committee's monetary policy announcement scheduled for Thursday. Most US Treasury yields experienced upward movement, with the 10-year yield rising by 16.9 basis points to 4.45%, while the two-year rate increased by 8.6 basis points to 4.29%. In economic developments, mortgage applications fell by 10.8% in the week ending November 1, driven down by a rise in mortgage rates to their highest levels since July, as reported by the Mortgage Bankers Association on Wednesday.
This drop follows a 0.1% decline in overall activity in the week ending October 25. On the company front, Super Micro Computer ($SMCI) saw its shares plunge 22% intraday, making it the worst performer on both the S&P 500 and Nasdaq, after releasing fiscal Q2 guidance that failed to meet analysts' expectations.
The company also remains behind on its form 10-K filing for the fiscal year concluded June 30. Wedbush mentioned in a note on Wednesday that Donald Trump's presidency could benefit Big Tech and Tesla ($TSLA) by advancing significant artificial intelligence initiatives, potentially lowering regulatory barriers, and affording Tesla an advantage if the US government reduces electric vehicle subsidies while increasing tariffs on Chinese imports.
Tesla's shares saw a remarkable 13% surge intraday, exceeding Nasdaq gains. West Texas Intermediate crude oil dipped 0.1% to $71.89 a barrel..