By Caitlin McCabe
The "Trump trade" has gone into overdrive.
Stocks rallied and Treasury prices fell, with investors piling into trades that align with a second Donald Trump presidency.
The dollar leapt and Treasury yields jumped, reflecting bets that Trump's policies could widen the budget deficit and stoke inflation, while tariffs would strain trading partners. The 10-year Treasury yield topped 4.4%, on pace for its highest close since July.
"The markets are now trading full-on 'Trump trade,'" said Stephen Dainton, a senior executive at Barclays who oversees the lender's investment bank including its large trading division.
The Republican candidate's Trump Media, or DJT, surged more than 30% premarket. Tesla-helmed by Trump ally and donor Elon Musk-rose 15%. Shares of cryptocurrency companies also gained, mirroring a big run-up in bitcoin.
Stocks in banks, private prisons and gun manufacturers jumped premarket, while solar-energy shares fell, as did some electric-vehicle stocks.
In recent market action:
--Futures tied to major U.S. stock indexes jumped. Dow industrials futures led the way, gaining more than 2.5%. Futures for the small-cap Russell 2000 index rocketed more than 5% higher.
--Bond yields climbed--particularly longer-dated ones--. The threat of a larger supply of Treasurys has pushed down bond prices.
--The dollar strengthened, as the euro and currencies in countries such as Brazil, China, Japan and Mexico swooned.
--Bitcoin advanced above $73,000, notching a new record intraday high.
--Wall Street's fear gauge, the VIX, plunged to a roughly six-week low, as investors cut bets that election uncertainty could stoke market volatility.
--The Stoxx Europe 600 jumped more than 1.5%
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(END) Dow Jones Newswires
November 06, 2024 06:41 ET (11:41 GMT)
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