U.S. equity futures exhibited significant gains in Wednesday's premarket activity as traders responded to Republican Donald Trump's election victory and anticipated the Federal Reserve's two-day monetary policy meeting. The Standard & Poor's 500 index rose 2.1%, the Dow Jones Industrial Average advanced 2.9%, and the Nasdaq added 1.5% prior to the opening bell.
Meanwhile, Asian exchanges showed mixed to lower performances, while European bourses pointed higher in midday trading. Trump emerged victorious over Vice President Kamala Harris to become the 47th President of the United States, reclaiming the White House after his previous loss in the re-election bid four years ago.
The former president secured victory by winning the 10 electoral college votes in Wisconsin, surpassing the majority needed for election with a total of at least 277 electors. The Senate appeared poised to remain under Republican control, although the status of the House was still uncertain. In premarket trading, shares of Trump Media & Technology Group ($DJT), largely owned by Trump, surged by 34%, while Tesla ($TSLA) saw a 12% increase.
Elon Musk, CEO of Tesla, played a pivotal role as a key campaign supporter for Trump in recent weeks. On the agenda for the Fed's monetary policy committee, a crucial meeting is set for Wednesday, with expectations of an announcement on interest rates to be made on Thursday. Analysts widely anticipate that the central bank may reduce interest rates by 25 basis points, as per the CME FedWatch tool. Additionally, the economic calendar outlined several reports, including the weekly mortgage applications bulletin scheduled for 7 am ET, followed by S&P Global's October purchasing managers' index composite final report at 9:45 am.
The weekly EIA domestic petroleum inventories report is anticipated for release at 10:30 am. Companies such as 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 market opens.
In the after-hours, Qualcomm ($QCOM), Arm Holdings ($ARM), and McKesson ($MCK) will present their earnings. In premarket trading, bitcoin experienced a 6.8% rise, reaching $74,173, while West Texas Intermediate crude oil declined by 1.4% to $70.98 per barrel. Yields on 10-year Treasuries increased by 18 basis points to 4.47%, and gold prices fell by 1.2% to $2,717 an ounce..