US stocks surged to new record highs, and Bitcoin reached an all-time peak following Donald Trump’s shocking re-election victory. Wall Street saw a sharp rally, with the major stock indexes soaring, especially in the banking sector. Investors reacted positively to Trump’s promises of tax cuts, raising tariffs, and his aggressive stance on economic growth. At the same time, the US dollar posted its largest gain in eight years, jumping nearly 1.65% against major global currencies.
Trump’s Economic Vision Pushes Markets to New Heights
Trump’s victory created waves in the markets, with the dollar rising against the pound, euro, and yen. The UK’s pound slumped 1.16% to its lowest level since August, while the euro fell 1.89% against the dollar. Despite initial optimism in European markets, stock indexes like Germany’s Dax and France’s CAC 40 ended the day lower. In Asia, Japan’s Nikkei 225 rose by 2.6%, while mainland China’s Shanghai Composite saw a minor dip.
The rally in US shares was fueled by Trump’s tax and trade policies, including his plan to increase tariffs, particularly on China. This has sparked concerns in the global economy, with analysts predicting potential slowdowns in key markets such as the UK and the eurozone.
Bitcoin Hits a Historic $75,999.04
In the crypto market, Bitcoin hit a record high of $75,999.04, marking a $6,600 increase. Trump’s support for cryptocurrency stands in stark contrast to the policies of the Biden administration, which has pursued a more aggressive regulatory approach. During his campaign, Trump promised to make the US the “Bitcoin superpower of the world” and even hinted at firing SEC Chair Gary Gensler, who has cracked down on crypto firms. Bitcoin’s meteoric rise follows Trump’s pledge to protect and grow the cryptocurrency market.
Tesla shares, also closely tied to Trump’s vision, surged 14%, hitting a two-year high. CEO Elon Musk, an ardent cryptocurrency supporter, has remained a vocal ally of Trump’s campaign.
Global Reactions and Economic Concerns
While US markets were buoyed by the election results, economists warn that Trump’s trade policies could have adverse effects globally. In the UK, Chancellor Rachel Reeves emphasized the importance of open global trade, signaling potential conflicts with Trump’s protectionist agenda. As the world watches closely, attention is now turning to the US Federal Reserve’s upcoming decision on interest rates, with comments from Fed Chair Jerome Powell expected to add further volatility to the global economic landscape.
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