How Investors Are Reacting to Trump’s Win

  • Equity indexes soar, US yields and dollar rise after election
  • ‘Trump trade’ is in play, keying off tax-cut, tariff agenda

Donald Trump arrives to speak during an election night event at the Palm Beach Convention Center in West Palm Beach, Florida, on Nov. 6. 

Photographer: Chip Somodevilla/Getty Images
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A risk-on frenzy enveloped financial assets Wednesday as Donald Trump clinched a second term as US president, decisively winning what had been seen as a neck-and-neck race against Vice President Kamala Harris.

US stocks rallied, with the S&P 500 Index soaring 2.1% around 12:30 p.m. in New York, and riskier parts of the equities market posting the biggest gains. The Russell 2000 Index, a benchmark for small-cap shares, jumped 4.9%. The VIX Index of stock-market volatility fell to around 16, declining from the elevated levels it touched in the days leading up to the vote.