Donald Trump clinched a historic victory in the U.S. presidential election, securing 295 electoral votes as of 9:00 A.M. IST, November 7th, 2024. Key to his win was his success in swing states like Florida, Ohio, and North Carolina, as well as flipping Pennsylvania (19 electoral votes) and Georgia (16 electoral votes) back to Republican control, capturing a total of 35 decisive electoral votes. Counting of votes was still underway in the swing states of Arizona, Michigan and Nevada where trump is leading.His promises of economic revitalization and strong national security resonated with voters, especially in industrial and rural areas.
Trump’s victory was further bolstered by the Senate shifting to a Republican majority of 52-48, strengthening his mandate for pushing his agenda on tax cuts, deregulation, and infrastructure investment. In his victory speech, Trump emphasized an “America First” approach, focusing on tax cuts, infrastructure investment, job creation, and revitalizing American manufacturing, promising to strengthen the U.S. economy while maintaining a firm position on immigration and international trade.
Market Reactions
- U.S. Markets: The S&P 500, Nasdaq, and Dow Jones reached record highs, with the Dow up 1,450.11 points (3.43%) to 43,671.12, the S&P 500 rising 138.27 points (2.39%) to 5,920.87, and the Nasdaq gaining 514.26 points (2.78%) to 18,953.43.
- Treasury Yields: U.S. Treasuries dropped sharply on Wednesday, with the 10-year yield rising to 4.479%, its highest since July. The increase in yields reflected investor expectations of higher deficits and inflation following Trump’s victory, along with projections of a Republican-controlled Senate.
- Commodity Markets: Oil prices rose slightly, with Brent at $75.18 and WTI at $71.85, amid supply concerns. Gold dropped 3.1% to $2,658.35 as stronger dollar and higher yields pressured the metal.
- Indian Markets: Nifty 50 and Sensex initially fell by 0.6% and 0.7%, respectively, but largely stabilized by close. The rupee depreciated by 0.4% against the dollar due to market uncertainty.
- European Markets: European stocks reversed gains, closing 0.59% lower after Trump’s U.S. election win over Kamala Harris. Financial services rose 1.84%, while utilities led losses, down 2.61%.
- China’s reaction was cautious, reflecting uncertainty over renewed trade tensions, while the Shanghai Composite fell by 1.3% amid concerns of potential economic strain.
