Trump's Presidential Win Sparks Surge in Multiple Asset Classes

Insights — The results of Tuesday's U.S. presidential election are in, with Donald Trump returning to the White House. The Republican Party also secured majorities in the Senate, paving the way for smoother passage of Trump's reforms and tariffs.

In a speech early Wednesday, Trump declared, "This was the greatest political movement of all time," and pledged to "heal our country" by addressing issues such as border security, reducing debt, and cutting taxes. He also mentioned China, stating it "doesn't have what we have."

While final election results may not be confirmed until late Wednesday, markets have already reacted to Trump's anticipated victory and Republican control of Congress. Bitcoin briefly surged to $75,000 before pulling back to $73,740, as investors expect Trump to ease cryptocurrency regulations. 

Meanwhile, the U.S. dollar began to rise early in the day, following signs of a Republican win in Georgia, and continued to gain momentum throughout the trading session. Analysts believe that Trump's tariff and immigration policies could spur inflation, thereby boosting the dollar. The U.S. Dollar Index surged by as much as 1.77% to 105.3 before pulling back to 104.7.

The 10-year Treasury yield surged to 4.47%, its highest since July, amid concerns that Trump's policies could increase the federal deficit and negatively impact bond prices.

Equity markets, having largely priced in a Trump win, saw stock index futures rise sharply as his victory became more apparent.