US stock markets and Bitcoin surged to record highs following Donald Trump’s surprise victory in the 2024 presidential election, with the broader market reacting positively to his promises of tax cuts and tariff hikes.
Stock Market Reaches New Heights
Wall Street experienced a remarkable rally as major US indexes hit record levels, buoyed by investor optimism over Trump’s economic policies. Banks, in particular, saw significant gains, capitalizing on expectations of higher interest rates as a result of the new administration’s stance on inflation. The US dollar also posted its largest single-day gain in eight years, climbing 1.65% against several major currencies, including the euro, pound, and yen. The dollar’s rise further fueled the bullish sentiment in the stock market. Meanwhile, the FTSE 100 in the UK and European markets faced modest declines, as investors reacted to the uncertain global trade landscape under Trump’s protectionist policies.
Bitcoin Breaks Records Amidst Policy Promises
Bitcoin reached an all-time high, surpassing $75,999 per coin, following Trump’s election win. The surge was driven by his pro-crypto stance, in stark contrast to the previous administration’s regulatory crackdown on digital currencies. Trump had promised to make the US the “Bitcoin superpower of the world,” and his campaign statements suggested he might remove key crypto regulators, like Gary Gensler, from their posts. This assurance sent a wave of optimism through the crypto market, with Bitcoin’s price soaring by over $6,600.
Concerns Over Global Trade and Inflation
While many investors welcomed Trump’s fiscal policies, concerns about his tariff-heavy approach to trade remained. Economists warned that Trump’s trade policies, particularly those targeting China, could disrupt global markets and lead to slower economic growth in countries like the UK. His proposed tariffs and protectionist measures could have lasting effects on global supply chains, especially in technology sectors reliant on imports. In the US, though, his stance on taxes and trade is likely to push inflation higher, prompting the Federal Reserve to maintain higher interest rates for longer periods, which benefits dollar-based investments.
Elon Musk’s Influence and Market Reactions
The rally also benefited Tesla, with shares of the electric car company surging 14% to a two-year high. Elon Musk, a vocal Trump supporter, has been a strong advocate for Bitcoin, and Tesla’s 2021 investment in the cryptocurrency has fueled further interest in the digital asset.
As the world watches, attention now turns to the upcoming US Federal Reserve decision on interest rates and any comments from Jerome Powell that could influence market trends further.
For more details, visit the BBC article.