Financial markets rallied overnight and in pre-market trading as former President Donald Trump gained a significant lead in the U.S. presidential election, with some outlets projecting him as the winner. The surge was driven by Trump's potential victory and the market's expectations of his policies, particularly in the tech and crypto sectors.
Tesla Inc.'s stock soared as much as 13% in overnight trading, fueled by the company's CEO Elon Musk's vocal support for Trump. Musk has been one of Trump's biggest backers, donating at least $132 million to his campaign and forming a pro-Trump super PAC. The billionaire has lauded Trump's promises to overhaul the regulatory landscape and support innovation in the crypto space.
Cryptocurrency assets also surged on the prospects of a Trump presidency. Bitcoin, the world's largest cryptocurrency, soared above $75,000, eclipsing its previous record set in March following the launch of U.S. spot-Bitcoin exchange-traded funds. Shares of crypto-related companies, including Coinbase Global and Riot Platforms, rallied as well, reflecting the market's optimism about Trump's crypto-friendly policies.
The former president has vowed to take a series of pro-crypto measures if elected, including firing SEC Chairman Gary Gensler, whom he accuses of stifling innovation, and establishing a Bitcoin Advisory Council and federal Bitcoin reserves. Trump has also promised to pardon Ross Ulbricht, the founder of the now-defunct Silk Road darknet market, as a gesture toward cryptocurrency freedom.
