Dow Average Rallies to Record High as Bonds Tumble on Trump Bets
- Treasury 30-year auction shows weakened demand post-election
- Dollar climbs as Republican’s win boosts inflation outlook
Markets and Stocks React to Trump's Victory
Donald Trump’s unlikely rise to power is providing a shot in the arm for global financial markets, with stocks and metals rallying on optimism that his fiscal-stimulus plans will boost the economy. Bonds tumbled.
The MSCI All Country World Index erased its monthly decline and the Dow Jones Industrial Average climbed to a record high. Copper posted its biggest back-to-back surge in three years, gaining alongside lead, zinc, tin and aluminum. The dollar rose against most major peers, while government bonds extended their selloff as Trump’s win bolstered bets on faster inflation. Latin American equities, debt and currencies plunged on speculation that higher U.S. interest rates would damp the appeal of riskier emerging-market securities.