As Trump was elected the 47th President of the United States, markets posted sharp gains on Wednesday. All the major indices rallied with the Dow Jones Industrial Average (DJIA) index rising more than 3% and closing at a record high.
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On Thursday, futures gained slightly as traders will keenly watch the Federal Reserve’s interest rate decision later today. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average, and the S&P 500 (SPX) were up 0.19%, 0.2%, and 0.15%, respectively, at 3:28 a.m. EST, November 7.
With Trump’s potential return, let us look at the stocks and sectors that stand to gain.
- Tesla (TSLA): The Trump win is likely to payoff for the EV major, as Elon Musk, a Trump supporter who contributed significantly to his campaign, is expected to benefit from Trump’s policies. Following the election updates, Musk posted on the social media platform X, “The people of America gave @realDonaldTrump a crystal clear mandate for change tonight.”
- Trump Media & Technology Group (DJT): Trump’s media company is buoyed by the prospect of his return to the White House. Meanwhile, DJT’s quarterly loss narrowed to $19.3 million in the third quarter, down from a loss of $26.03 million in the same period last year.
- The crypto market welcomed Trump’s probable win, with Bitcoin (BTC-USD) gaining more than 1% at the time of writing. Other crypto stocks, including Coinbase Global (COIN), Robinhood (HOOD), and MicroStrategy (MSTR), also soared on Wednesday as Trump is seen as a pro-crypto candidate.
- Furthermore, energy companies such as ExxonMobil (XOM) and Chevron (CVX) are expected to benefit from Trump as the next President, as there is the possibility of supportive oil and gas policies under a Trump administration.
- The banking sector, including banks like JPMorgan Chase (JPM) and Wells Fargo (WFC), could see a second Trump term easing Wall Street regulations, boosting bank returns through more mergers and challenges to Biden-era rules.
- Even companies that run private prisons and detention centers, such as Geo Group (GEO) and CoreCivic (CXW), could get a boost as Trump has vowed to deport illegal immigrants and has indicated a commitment to securing U.S. borders.
In short, the Trump win appears set to favor key sectors, with investors reacting to anticipated shifts in regulatory and policy landscapes.
