Wall Street Cheers Trump Victory as Stocks Soar

Following Donald Trump's historic 2024 presidential victory, U.S. stocks surged and investors doubled down on the dollar. The S&P 500 hit a record high, while smaller companies saw significant gains. All eyes are on the Federal Reserve's upcoming monetary policy meeting amidst speculation of potential interest rate cuts.

Investors in the United States showed confidence in the markets by accumulating stocks and betting on the dollar after Donald Trump's historic win in the 2024 presidential elections. The benchmark S&P 500 index climbed to 5,881.15 points, an increase of 98.39 points or 1.70 percent, as of this report's filing. At one stage in early trading, the index reached a new 52-week high of 5,905.60 points.

To date, the index has risen by approximately 24 percent this year. The New York Times reported that U.S. stock markets, which rose consistently overnight while votes were tallied, surged during early trade on Wednesday morning as election results were confirmed.

Also contributing to market exuberance was the Russell 2000 index, representing smaller companies with significant exposure to the U.S. economy, which jumped around 4 percent. In a speech today, Trump announced intentions to increase tariffs and lower taxes, indicating that his administration aims to strengthen the American economy.

Looking ahead, the focus shifts to the U.S. Federal Reserve's monetary policy meeting scheduled for Thursday. The possibility and scale of an interest rate cut will be under global scrutiny. In a significant policy shift following eight consecutive meetings of steady rates, the Federal Reserve made a notable 50 basis points interest rate cut at its last review in September.

Since July 2023, the Fed had maintained policy rates at current restrictive levels through eight consecutive review sessions. During the COVID-19 pandemic, rates were nearly zero. While investors globally anticipate a rate reduction this time as well, the extent of the cut remains a point of keen interest. (ANI)

(With inputs from agencies.)