Trump's victory spurs rally: Tesla and Bitcoin the big winners

November 13, 2024
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Trump's victory spurs rally: Tesla and Bitcoin the big winners

Photo credit: Pexels

Financial markets responded positively to Donald Trump's victory in the US presidential election, with a notable rally across many areas.

While there is ongoing debate about the potential effects of Trump's policies on the economy, the upward trend in the markets appears to be stabilizing.

On Tuesday, the three primary US stock indexes closed lower after having increased approximately 5% since Nov. 4.

Tesla's stock experienced a remarkable increase of around 35% since Nov. 4, elevating its market capitalization beyond $1 trillion and adding over $50 billion to Elon Musk's net worth.

Investors are optimistic that a Trump administration will lead to reduced scrutiny regarding Tesla's innovations, such as self-driving technology.

The cryptocurrency market also benefited, with Bitcoin's value soaring more than 25% to reach new heights, briefly exceeding $89,000.

Investors are hopeful for favorable regulatory changes under Trump, who has pledged to establish the US as the "crypto capital of the planet."

Banks also saw gains, with shares of major financial institutions rising by double digits due to expectations of reduced regulatory burdens.

Trump is anticipated to impact forthcoming regulations and distance himself from anti-monopoly advocate Lina Khan.

Interstlingly, shares of prison operators GEO Group and CoreCivic surged by approximately 70% since Nov. 4, as investors anticipate new business prospects stemming from Trump's plans to deport millions of migrants and reverse policies that have been unfavorable to private prison companies.

The dollar index increased by more than 2% last week, reaching its highest point since April.

This development indicates strong economic prospects but also implies that interest rates may remain elevated, influenced by Trump's policies and overall economic strength.

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