Decades rose Standard & Poor’s index Futures rose by 1.3 percent, and revenues rose Bonds The 10-year Treasury rose 18 basis points to a four-month high of 4.46 percent, and the price of Bitcoin jumped to a new record high above $75,000.
These moves reflect growing expectations of a victory Trump In the US elections, with the chances of Vice President Kamala Harris’ victory diminishing.
A number of investors have bet on Wall Street However, Trump’s pro-growth stance regarding industrial policy and corporate tax cuts and customs tariffs That would boost stocks but could fuel inflation – which would spur bond yields and the US dollar higher.
And rose Bloomberg Dollar Index By 1.5 percent. And it went down Mexican peso by 2.8 percent, while it decreased Yen The Japanese and the euro by at least 1.6 percent.
Index increased Contact the American 2000, for small businesses, by 2.4 percent, and rose Stocks in Japan And Australia, while it declined Stocks In Hong Kong. The dollar’s rise sent copper down along with most metals and commodities.
Prices fell Oil More than one percent in early Wednesday trading, with the dollar becoming stronger due to market bets that the US presidential elections may tilt in favor of Republican Donald Trump, although the race is still very close, in addition to a rise in US crude inventories more than expected.
For his part, Tony Sycamore, an analyst at IG Markets, told Reuters, “Initial indicators favor the Republicans, and while it is still early, US bond yields and the dollar are rising… This in turn negatively affects crude prices, which have performed well in the last few sessions.” past”.
In contrast to Tuesday’s relatively quiet session, Wall Street expected big moves could occur regardless of the election outcome. The Goldman Sachs Group indicated that a complete Republican victory could raise the S&P 500 index by 3 percent, while the index would likely decline by a similar percentage if the Democrats won the presidency and Congress together. The movements would be half this size in the event of a divided government.
For his part, Andrew Tyler of JPMorgan Securities said that any result other than a Democratic sweep could lead to stocks rising, according to Bloomberg.
A note from Morgan Stanley said that risk appetite may decline in the event of a Republican sweep, due to rising yields driven by financial concerns, but stocks of growth-sensitive cyclical companies may rise if bond markets respond positively.
If Harris wins with a divided Congress, the memo expects stocks of renewable energy companies and companies exposed to tariffs to rise, while housing-related sectors will benefit from lower returns.
