Trump Trade.

U.S. stocks rallied on Wednesday after Donald Trump won the U.S. presidential elections.

?? DJIA +3.57%, S&P 500 +2.53%, NASDAQ +2.95%

Stocks rallied hard on Wednesday as Donald Trump was declared the winner of the 2024 presidential election. Meanwhile, the Republican party took the majority in the U.S. Senate and appears to be on track to win the House of Representatives.

All three major stock indexes surged to new all-time highs, and U.S. Treasury yields advanced aggressively, causing a selloff in bonds following the election results. The U.S. dollar also advanced with yields over perceptions that Trump's policies may put upward pressure on inflation and increase the budget deficit.

Investors are looking ahead to Thursday's conclusion of the Federal Reserve's policy meeting, during which the central bank is expected to cut interest rates by 25 basis points.

Trading on Wednesday:

• The U.S. 10-year yield rose 13.8 basis points to end at 4.425%.
• NYMEX WTI crude oil settled 0.42% lower at $71.69 a barrel.
• COMEX gold fell 2.65%, settling at $2,667.60 t oz.
• The U.S. dollar rose to a multi-month high, and Bitcoin topped $75,000.

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Looking Ahead

Markets cheered Donald Trump's election on Wednesday, and traders positioned according to their outlooks on a second Trump presidency.

Investors received a great deal of clarity on the policy front. However, the future outlook for inflation and the budget deficit is still in question. While analysts are generally concerned about inflation in the new Trump era, fears of this materializing may be overblown.??

Thursday's Fed decision will be the focus of the discussion and should offer better insight into how monetary policy will evolve going forward.??

We remain positive on financial markets in light of these new developments.

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MCF Capital Management, LLC is an independent, family-run, financial advisory firm that manages investment portfolios for individuals and businesses through Quantitative Market Data Analysis.

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THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INVESTMENT ADVICE.?

???SOURCES:?LSEG Workspace, Dow Jones NewsPlus, MarketWatch, Wall Street Journal, Barron’s, FinancialJuice, Investing .com, CNBC, Reuters, Wells Fargo Investment Institute, TradingView, Zacks

*Image: Wednesday’s Intraday Chart (1 Minute), Source: TradingView via LSEG Workspace