U.S. Markets Hit Record Highs After Trump Victory, Despite Media Fear Mongering

Nick Kangadis | November 10, 2016
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Remember how media outlets like CNN kept constantly reporting that Trump's election victory was causing the Dow futures index to tumble?

What they failed to mention is that U.S. markets, regardless of which election year it was or which party ended up winning the race, always see market volatility the night of and the day after Election Day. The indexes themselves don’t necessarily care about which party a candidate belongs to.

But what markets do care about? Uncertainty.

CNN’s constant whining about how the Dow futures and global trading were plummeting most likely caused the futures to drop as much as 900 points on Election Night. However, by the end of the night, traders pulled up their bootstraps and the futures market corrected itself and ended up down only about 190 points.

So what happened on the first day of trading, right after President-elect Donald Trump’s victory over Hillary Clinton shocked many bewildered members of the media? At one point during early trading Wednesday, the Dow Jones Industrial Average (DJIA) rose to an all-time high (18,706.99) before settling at 18,603.14 to close the day.

As of this writing, the DJIA is up 86.25 points during early Thursday trading.

Bloomberg analysts speculated as to the rise in markets since the election:

Drugmakers and banks, which lifted the S&P 500 yesterday, climbed on bets the Republican administration will mean less regulatory oversight in those sectors than a win for Hillary Clinton. Allergan Plc and Pfizer Inc. added 2.4 percent or more, while Goldman Sachs Group Inc. and JPMorgan Chase & Co. also advanced.

From what it sounds like, financial institutions are foaming at the mouth that someone from the business world won the election.

“It’s a relief rally over the certainty of the outcome of the election and after the conciliatory tone that Trump took,” said Nick Skiming, a fund manager at Jersey, Channel Islands-based Ashburton Ltd., whose firm oversees $10 billion, told Bloomberg. “There’s hope that a new president can introduce reforms that will enable corporate America to move forward.”

All of the panic and hysteria about the global markets on election night was completely media driven, and as far as we can tell the markets are definitely open for business.

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