Following the election victory of Republican candidate Donald Trump, U.S. stocks experienced a significant surge. The Dow Jones industrial average saw a gain of over 1,300 points by late morning, while Canadian markets also saw an increase.
“It looks like the 2016 playbook all over again,” remarked John Zechner, chairman and lead equity manager at J. Zechner Associates, highlighting the rise in cyclical stocks such as banks. These sectors, along with other potential beneficiaries of less regulation and increased economic stimulus, experienced growth on Wednesday.
Notable companies like Goldman Sachs and JPMorgan Chase, which are part of the Dow Jones industrial average, witnessed a jump in their share prices. The Dow itself reached 43,537.31 points, marking a gain of 1,315.43 points.
In the U.S., the Dow led the major indexes with a gain of over three percent in late-morning trading. The S&P 500 index rose by 114.44 points to reach 5,897.20, while the Nasdaq composite saw an increase of 409.83 points, reaching 18,849.00.
Mid-day on Wednesday, Elon Musk’s Tesla saw a significant increase of over 13 percent, while Trump Media & Technology Group also experienced a rise of over 10 percent. Additionally, Bitcoin surged as Trump expressed intentions to establish the U.S. as the “crypto capital of the planet.”
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The S&P/TSX composite index showed an increase of 71.71 points, reaching 24,459.61.
While Canadian energy, technology, and financial stocks performed well, the index was negatively impacted by declines in utilities, telecom, base metals, and health care sectors.
Canadian cannabis stocks experienced a significant drop as attempts to legalize recreational cannabis in various states were unsuccessful.
On the currency front, the Canadian dollar was trading at 71.81 cents US compared to 71.97 cents US on Tuesday.
In commodities trading, the December crude oil contract saw a 10-cent increase, reaching US$72.09 per barrel, while the December natural gas contract rose by five cents to US$2.72 per mmBTU.
Conversely, the December gold contract experienced a decrease of US$72.50, settling at $2,677.20 an ounce, and the December copper contract was down by 19 cents, hitting US$4.28 per pound.
