US equity futures showed a strong uptick in the green during Wednesday's premarket trading as traders analyze the recent election of Republican Donald Trump and gear up for the Federal Reserve's upcoming monetary policy meeting that spans two days. The Standard & Poor's 500 gained 2.1%, the Dow Jones Industrial Average saw a rise of 2.9%, and the Nasdaq increased by 1.5% prior to the trading opening.
Meanwhile, Asian exchanges displayed a mixed to lower trend, whereas European markets indicated upward movement midway through the session. Trump triumphed over Vice President Kamala Harris, marking his return to the presidency as the 47th US president, following a previous defeat in his re-election attempt four years ago.
The former president secured his victory by clinching 10 electoral college votes in Wisconsin, totaling at least 277 electors, which surpasses the necessary majority for victory, the Associated Press reported. Control of the Senate is expected to rest with the Republican party, while the status for the House remains unclear. Shares of Trump Media & Technology Group ($DJT), predominantly owned by Trump, skyrocketed by 34% ahead of the market opening, while Tesla ($TSLA) saw an impressive jump of 12%.
Elon Musk, the chief executive of Tesla, played a significant role as a campaigner for Trump in recent weeks. On the agenda for the Federal Reserve's monetary policy committee is a meeting set for Wednesday, with a decision regarding interest rates anticipated on Thursday. The market widely expects the central bank to reduce interest rates by 25 basis points, as indicated by the CME FedWatch tool. On the economic front, a report on weekly mortgage applications is scheduled for release at 7 am ET, followed by S&P Global's final report on the October purchasing managers' index composite at 9:45 am.
The weekly EIA domestic petroleum inventories report is also pegged for a 10:30 am publication. Various companies including Novo Nordisk ($NOV), CVS Health ($CVS), American Electric Power ($AEP), Sempra ($SRE), Johnson Controls International ($JCI), Trimble ($TRMB), Performance Food Group ($PFGC), and Charles River Laboratories International ($CRL) are set to release their latest financial results before the bell, alongside Qualcomm ($QCOM), Arm Holdings ($ARM), and McKesson ($MCK) with earnings planned for the afterhours trading session. In premarket trading, bitcoin soared by 6.8%, reaching $74,173, while West Texas Intermediate crude oil experienced a downturn of 1.4% to $70.98 per barrel.
Yields on 10-year Treasuries surged by 18 basis points to 4.47%, and gold prices dipped by 1.2% to $2,717 an ounce..