Stock markets in the US and across the GCC showed early gains on Wednesday, as Donald Trump declared his victory in the US presidential election against Kamala Harris.
In the US, stock futures hit record highs, with futures on the Dow Jones Industrial Average soaring 1,176 points, or about 2.8%, marking its largest daily jump since November 2022. Meanwhile, S&P 500 futures gained 1.9%, and Nasdaq 100 futures rose 1.3%.
In the Middle East, Gulf bourses recorded gains. Saudi Arabia’s main index increased by 0.9%, driven by a 2.1% rise in Al Rajhi Bank and a 3.9% boost in Saudi Arabian Mining Company. Additionally, Saudi Electricity surged 5.9% following a positive Q3 2024 profit.
Dubai’s primary index rose by 0.5%, with Salik Company up 1.9% while the Abu Dhabi index recorded a slight increase of 0.1%. The Qatari market remained closed for a public holiday.
“Global markets reacted swiftly to Trump’s anticipated victory, with US stock futures, the dollar, and Treasury yields all rising,” said Mohamed Hashad, Chief Market Strategist at Noor Capital. “Analysts noted that these market moves align with investor expectations of a Trump administration’s economic approach, prioritising reduced regulatory pressures and trade policy changes.”
Currencies, bonds and cryptocurrencies also reacted immediately to the signs pointing to a Republican victory. The dollar surged and Treasury yields jumped, while Bitcoin soared to above $75,000 for the first time in history.
“Bond yields have moved decisively higher in reaction to larger expected budget deficits under a Trump administration,” said Daniel Murray, Deputy CIO & Global Head of Research at EFG Asset Management. “The yield curve is now positively sloped from two years out, signalling greater confidence in economic expansion over the next 12 months. Market anticipation of Trump’s victory helps explain the muted market reaction to Friday’s weak nonfarm payroll numbers.”
During his campaign, Trump promised to impose heavy tariffs on imported goods, claiming that they would increase US revenues, strengthen domestic industries and deter unwanted foreign competition. However, there have been concerns that these tariffs would result in higher prices for US consumers.
The day before the election, the YS stock market staged a broad rally, with the S&P 500 gaining 1.2%, bringing the benchmark’s 2024 gains to more than 21%.
