HONG KONG (AP) — Share prices and bond yields surged Wednesday as the Republican party gained control of the Senate and former President Donald Trump closed in…
Share prices and bond yields surged Wednesday as the Republican party gained control of the Senate and former President Donald Trump closed in on the 270 electoral votes needed to return him to the White House.
The full results of Tuesday’s election may not be known for days as officials count all the votes, but investors already were repositioning in anticipation of gains by the Republicans, who took control of the Senate for the first time in four years. The results of the House elections were not yet finalized.
Trump won the battleground state of Georgia, a Republican stronghold that had voted for Democrats in 2020. A win in North Carolina helped Trump narrow Vice President Kamala Harris’ pathways to victory. Clinching Pennsylvania took him within 3 electoral votes of the 270 votes needed to become the next president.
Auguring gains for U.S. markets on Wednesday, the future for the S&P 500 gained 1.7% and that for the Dow Jones Industrial Average was up 1.8%. The Nasdaq composite future was 1.8% higher.
The price of bitcoin jumped nearly 8% to a record $75,345.00, as investors bet on a victory for Trump, who has pledged support for cryptocurrencies.
Bond yields also surged, with the yield on the 10-year Treasury climbing to 4.4% from 4.28% on Tuesday.
“The markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook,” Peter Esho of Esho Capital said in a commentary.
Markets worldwide are fixated on what the election will mean for U.
