Major stock indices soared Wednesday morning in the wake of Donald Trump’s decisive victory in Tuesday’s presidential election.
When markets opened at 9:30 a.m., the S&P 500 was up 2%, while the tech-heavy Nasdaq climbed at about the same pace%. The Dow Jones Industrial Average gained 1,300 points, or 3.2%.
The last time the Dow, which represents larger, more established firms, saw a 1,000 point-jump in a single day was November 2022.
NBC News is projecting that Trump will finish with 276 Electoral College votes in his defeat of Democratic challenger Vice President Kamala Harris. Republicans are also poised to earn a firm majority in the Senate, while the House remains too close to call.
Trump has promised to extend or enact sweeping tax cuts and deregulatory policies that are widely supported across the business community. For now, that is pushing markets higher.
“Investor sentiment is pro-growth, pro-deregulation, and pro-markets, as seen in the overnight market action,” said David Bahnsen, chief investment officer, The Bahnsen Group, in a note to clients. “There is also an assumption that (merger and acquisition) activity will pick up and that more tax cuts are coming or the existing ones will be extended. This creates a strong backdrop for stocks.”