Dow Jones futures jumped early Wednesday in a strong stock market election reaction to former President Donald Trump winning a return to the White House. Republicans have retaken the Senate and may have the edge in the House.
S&P 500 and Nasdaq futures and Treasury yields also rallied, while bitcoin hit a record high. Trump-exposed stocks Tesla (TSLA) and Trump Media & Technology (DJT) were huge winners.
AI chip leader Nvidia (NVDA) edged higher, eyeing a buy point.
The stock market had rallied strongly Tuesday into election results. AI plays Palantir Technologies (PLTR) and Astera Labs (ALAB) were big winners. Palantir stock surged 23.5% and Astera Labs gapped up nearly 38%, both spiking to record highs on strong earnings and guidance.
The Federal Reserve’s next policy meeting starts Wednesday, with a quarter-point rate expected Thursday afternoon. Fed chief Jerome Powell’s comments about future policy will be in focus. A Trump presidency may have a notable impact on future Fed moves, with markets trimming odds slightly for rate cuts.
Dow Jones Futures Jump
Dow Jones futures soared 3.2% vs. fair value. S&P 500 futures jumped 2.% and Nasdaq 100 futures leapt 1.6%. Russell 2000 futures spiked 6.4%.
The major indexes are set to open at record highs or nearly so. The Russell 2000 is poised to gap up to its best levels since its all-time high in November 2021.
The 10-year Treasury yield raced up to 4.45%.
Bitcoin surged above $75,000 overnight, hitting a record high. It’s currently above $74,000.
Crude oil futures and gold fell about 2%, with copper futures down 4%. A strong dollar hit commodities, with Trump tariff fears also weighing on copper.
Remember that premarket action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Stock Market Rally
The stock market rally had a strong session on Tuesday, with investors bullish heading into election night.
The Dow Jones Industrial Average rose 0.9% in Tuesday’s stock market trading. The S&P 500 index jumped 1.2%. The Nasdaq composite leapt 1.4%. The small-cap Russell 2000 ran up 1.9%.
The Dow Jones regained its 50-day line Tuesday. The S&P 500, Nasdaq and Russell 2000 moved above their 21-day lines.
All remain at key levels, with the stock market election results perhaps providing a big positive or negative catalyst. Many leading stocks look like the S&P 500, pulling back from record highs above a prior consolidation, finding support at the 50-day or 21-day.
Trump Media Skyrockets
Trump Media stock, which has acted as a stock market sentiment gauge for Donald Trump’s candidacy, spiked 34% early Wednesday. DJT stock leapt 19% intraday Tuesday before closing down 1.2%.
Late Tuesday, Trump Media reported a $19.2 million loss for the third quarter in a surprise Election Day filing after the close. The Truth Social parent, majority owned by Donald Trump, had $1.01 million in revenue, up slightly from recent quarters.
Tesla Stock
Tesla stock surged 13% before the open, signaling a move back to 52-week highs. CEO Elon Musk has been a huge Trump supporter.
TSLA stock popped 3.5% on Tuesday to 251.44, snapping a six-session slide, rebounding from its 21-day line.
Nvidia Stock
Nvidia stock rose 1% to above 141 before the open, just above the 140.76 buy point.
AI chip leader Nvidia (NVDA) rose 2.85% on Tuesday to 139.93, moving off the 21-day line, according to MarketSurge. Nvidia stock closed with a $3.432 trillion market cap vs. $3.378 trillion for Apple (AAPL).
What To Do Now
Futures suggest a strong post-election Trump bump for the major indexes. Many leading stocks could flash buy signals.
Assuming the gains hold past the open, investors can consider making some incremental buys. But there’s still the possibility of whipsaw action, even if there are no surprises going forward on the election.
The Fed meeting decision and continued heavy earnings add to the potential for big volatility.
The video embedded in this article discusses Tuesday’s stock market action and potential election impact. It also analyzes Astera Labs stock, Intuitive Surgical (ISRG) and Howmet Aerospace (HWM).
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