The decisive U.S. Presidential victory of Donald Trump after a grueling campaign that led to fears of political deadlock has led to sweeping gains in stocks and bonds. Traders called the gains a ‘relief rally’ and welcomed Trump’s deregulatory agenda, although stocks in solar plunged with the new administration pledging to ramp up fossil fuel production.
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00:00That was a Trump trade, okay? For the last couple of weeks I've been hearing of Trump trade this, Trump trade that.
00:05Well, yesterday, Wednesday, that was a Trump trade, as the markets went to space.
00:10And you say to me, hang on a minute, John, how is it possible that you've been telling us that Wall Street is concerned about policy and not partisanship?
00:18And that is absolutely true. It's true that people on Wall Street donate in equal measures to the Democrats and to the Republicans.
00:25And when it comes to stock picking or to bond choosing, it is down to policies rather than partisanship.
00:33However, that was such a big, decisive win, such an overwhelming mandate from the American people for Trump to do what Trump has promised he will do,
00:43that the markets had to react, even though they just had to, because you have to.
00:46That's what they do here. They're trying to make money for you and everybody else who has a pension around the world.
00:51So that is indeed what happened. And it followed a couple of sort of meh kind of days, a little bit sort of meh on Tuesday and Monday last week.
00:59And so they finally had their chance to go for it. And that's exactly what happened. It was a relief rally.
01:05It was basically the fact, I think, that they probably support Donald Trump's policies now that he's very much in focus for the medium and short and the long term.
01:15And also, I think, because they're quite happy to have a businessman back in the White House.
01:19I think all those three things are true. The rally was across the board. It was financials, technology, discretionary energy, communications.
01:28Let me give you a couple of good examples. Because Trump is going to bring in deregulation, the opposite of Harris and Biden, because of that,
01:36the banks did very well yesterday and technology did very well yesterday as well.
01:40Now, solar, on the other hand, did not do well yesterday because there is a sense that Trump may tinker with the Inflation Reduction Act of the Green New Deal.
01:47So solar was down yesterday, one of the few areas that was in the red.
01:51NVIDIA is back on top of the pops with a bullet. Number one, the most expensive company in the world, up 3 percent now.
01:58And Tesla benefited to the tune of about 12 percent yesterday and is now up 3 percent after that audacious backing for Donald Trump,
02:04that bet by Elon Musk that could have gone so wrong. And as far as Wall Street is concerned, so far has not.
02:11So we have the best day for U.S. stocks since 2022. And I will now give you some of the numbers.
02:16So yesterday, the Dow was up 3.5 percent. Now it is down just a tiny, tiny fraction as they struggle to hang on to those gains.
02:23The Nasdaq was up almost 3 percent yesterday, is now up one third of 1 percent, 246 points.
02:28S&P 500 yesterday, 48th record close of the year. It is now up by half a percent.
02:34The bond yields are up. Gold is up back today. Oil is down.
02:38And Bitcoin is at 76,000, almost a gain of half a percent.
02:42And that's because Trump is seen as the crypto candidate.
02:47Even even Dogecoin was up yesterday and Dogecoin was started as a joke by a couple of cartoonists who used to work for Disney.
02:55And it's caught on and now it is a legitimate cryptocurrency.
02:59And it was up about 20 percent yesterday because of the Trump win.