BIRMINGHAM, Ala. (WBRC) – The stock market broke records on Wednesday, following President-elect Donald Trump’s victory for the 47th presidency.
The Dow soared by 1,507 points or 3.57% to close at a new record high.
The S&P 500 and Nasdaq also reaching new highs with the S&P surging by 2.5% and the tech-heavy index closing 2.95% higher.
UAB Collat School of Business Finance Professor Stephanie Yates says the stock market does not like uncertainty, something we always see around presidential elections. Because the election was called pretty fast, the stock market rose fast as well.
Besides finally knowing who the next president is going to be, Yates says Trump’s business-focused mindset is a big factor too, calling it a double-whammy for the markets.
She says now people have a better idea of what investments to make… and businesses are able to create plans for the future.
Besides the stock market, cryptocurrency saw a big jump too.
“We’ve also got a candidate who has made comments very favorable about cryptocurrency and wanting the US to be the global leader in cryptocurrency so we saw something like an 8% rise in Bitcoin,” said Yates.
Yates says all of this is based on what people think will happen during the next presidency which is based on promises Trump’s made on the campaign trail.
He will be sworn into office in January.
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