Well that Happened but with a flyball right out of left field markets failed to implode overnight, instead putting in a pretty impressive rally after Dow futures were off over 900 points at one point.
Morning all
SPI: +162 @ 5314
XJO Yesterday: -95 @ 5162
A late rally into the close here yesterday may have been the clue for market sentiment overnight, but that was well before Trumps victory speech.
U.S. equities rose Wednesday, putting the Dow Jones industrial average within striking distance of a record high, after a stunning victory by Republican Donald Trump over Hillary Clinton.
The Dow rose more than 300 points in the afternoon, on track to close at a record high and about 25 points below its all-time intraday high.Caterpillar and Goldman Sachs contributed the most to gains.
The S&P 500 traded 1 percent higher after falling initially, with financials advancing 4 percent to lead advancers. "Within financial services, there is a guarded view that there may be less regulation [under Trump] than under a Clinton presidency," said John Stadtler, head of U.S. financial services at PwC.
The Nasdaq composite rose about 0.9 percent.
"We had a trial run in June with the Brexit vote," said Scott Clemons, chief investment strategist at Brown Brothers Harriman. "Like with Brexit, investors and traders are realizing that this is a process, not an event." "What you're seeing right now is a pretty predicable repositioning of portfolios."
Trump's victory may have wide implications on multiple fronts, including trade, taxes and foreign policy, among others. His win also puts into question the likelihood of a Federal Reserve rate hike. Market expectations for a rate hike in December briefly fell to around 50 percent, before holding around 76 percent, according to the CME Group's FedWatch tool. 1
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded 16.9 percent lower, near 15.6.
