Investors went all-in for the TSX on Wednesday with the financial sector playing a showdown hand against the tech sector in second place. Both sectors have tied optimism to Republican Donald Trump’s return to president. Trump secured victory over Vice President Kamala Harris, marking a comeback after his 2020 defeat. This win is expected to have significant implications for the global economy and markets, especially in Canada, which is one of the largest trading partners of the United States.
Once it was clear that Trump was going to win, investments anticipated to benefit from his presidency surged. Notably, Tesla (NASDAQ:TSLA), led by CEO Elon Musk, a well-known Trump supporter and financial backer, saw its shares rise by 14.7 per cent. Bank stocks also gained momentum, with JPMorgan (NYSE:JPM) up 11.5 per cent, Bank of America (NYSE:BAC) up 8.4 per cent, and Wells Fargo (NYSE:WFC) up 13.1 per cent. Shares of Trump Media and Technology Group (NASDAQ:DJT), a social media firm closely associated with Trump had spiked at 37 per cent in earlier trading and closed nearly 6 per cent higher. His love of gold didn’t help the commodity’s performance. The Dow Jones touched a new intraday record high.
The Canadian dollar traded for 71.73 cents US compared to 72.26 cents US on Tuesday.
US crude futures traded $0.13 lower at US$71.86 a barrel, and the Brent contract lost $0.41 to US$75.12 a barrel.
The price of gold was down US$79.69 to US$2,660.62.
In world markets, the Nikkei was up 1,005.77 points to 39,480.67, the Hang Seng was down 468.59 points to 20,538.38, the FTSE was down 11.78 points to 8,160.61, and the DAX was down 212.69 points to 19,043.58.
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(Top image generated with AI)