White House, U.S. flag & stock market collage
With Donald Trump projected to get the 270 electoral college votes needed to take the White House, Wall Street investors expect Trump policies to ease regulation and to return more profits to shareholders. The major indexes surged with the Dow surging almost 3% while Nasdaq rose almost 2% and S&P 500 climbed 1.5%. The Russell 2000 of smaller stocks leaped by over 4%.
While it may take years for the Trump administration to pass legislation and to implement policy changes, analysts believe that a favorable regulatory environment for the banking industry will boost long-term lending profitability. Bank of America (NYSE: BAC) is trading at $55 a share, up 5% from yesterday. JPMorgan Chase (NYSE: JPM) is trading at $240 a share, up 8% from yesterday.
The cryptocurrency sector is optimistic about Trump’s deregulatory stance on traditional finance, hoping this could extend to looser restrictions on cryptocurrency. Coinbase (Nasdaq: COIN) which operates a cryptocurrency exchange is trading at $230 a share, up 18% from yesterday. Block (NYSE: SQ) whose Square app can be used to buy and sell Bitcoin is trading at $77 a share, up 7% from yesterday. The price of Bitcoin (USD-BTC) has surged in the last 24 hours from below $70,000 each to more than $75,000 each.
With Trump’s policies prioritizing energy independence and less environment regulations, oil, gas, and coal companies can produce more energy while reducing costs. Peabody Energy (NYSE: BTU) is trading at $29 a share, up 7% from yesterday. Chevron (NYSE: CVX) is trading at $158 a share, up 2% from yesterday.
