Trump Wins: The Market Response
Risk assets went ballistic overnight, delivering one of the most explosive post-election moves in decades. A full-throated endorsement of pro-growth, deregulatory policies.
November 2024Election Night: Futures Explode
The result came faster than most expected. By early Wednesday morning, major networks called it for Trump — a decisive victory with Republican control of the Senate.
S&P 500 futures jumped over 2.5%, Nasdaq more than 3%, and Dow futures nearly 1,500 points in the overnight session. Stocks posted their best day in years.
Volatility collapsed. The VIX plunged from around 20 to the low teens in hours. Textbook relief: uncertainty resolved, policy clarity delivered.
Bitcoin and Crypto: Straight to New Highs
Crypto was the clearest winner. Bitcoin rocketed from around $70,000 to above $75,000 overnight, smashing its previous all-time high with ease.
Trump's campaign promises — lighter regulation, an end to the SEC's "war on crypto," and even talk of a national Bitcoin reserve — now look set to become reality.
This surge isn't just euphoria; it's positioning for a radically friendlier regulatory environment.
Sector Winners and Losers
Winners:
- Crypto stocks (MARA, RIOT, COIN) up 20-40%
- Financials surged on deregulation hopes
- Energy ripped on "drill baby drill" rhetoric
- Tesla up 15% on Musk's Trump ties
Losers: Renewable energy tanked on subsidy-cut fears. China-exposed names sold off on tariff concerns.
Bottom Line
This isn't just a one-day sugar high. The policy shift — tax cuts, deregulation, energy dominance, crypto embrace — creates multi-year tailwinds for risk assets.
Volatility will return, tariffs will create friction. But the initial message from markets is unambiguous: they love the outcome.
Vector Ridge is overweight U.S. equities, crypto exposure, and select financial/energy names.