Post-Election Market Surge: Trump's Impact on U.S. Stock Markets
Trump's success in the U.S. presidential election has created widespread volatility in global markets. The observed rise in stock and cryptocurrency markets has led to a FOMO effect among investors.
Significant Increase in Trump Media Trump Media & Technology Group Corp. gained nearly 40% in pre-market trading following Donald Trump's presidential victory. Despite reporting an operational loss of $23.7 million amid limited revenues, the substantial increase in value stands out due to the effects of the Trump rally, despite the company's irregular financial performance during this period.
Rapid Surge in Bitcoin and Cryptocurrencies With Trump's victory, Bitcoin briefly surpassed the $75,000 level, while altcoins also saw significant gains. Among stocks related to the crypto sector, Coinbase (COIN) rose by 13%, MicroStrategy (MSTR) by 14%, and Marathon Digital Holdings (MARA) by 11%. These increases reflect growing confidence in the cryptocurrency markets and Trump's favorable stance towards cryptocurrencies.
Role of Tesla and Elon Musk Tesla (TSLA) appreciated by 13% in pre-market trading. Elon Musk actively supported Trump’s campaign and was praised as a "genius" by Trump. Musk's campaigns for Trump are seen as one of the factors behind Tesla's rise.
Global Markets and the Trump Rally Global stock markets were influenced by the Trump rally. The BIST 100 index rose nearly 3%, making it one of the top-performing indices. European stocks generally saw gains of less than 1%, while U.S. futures exhibited significant increases, with US 2000 futures notably up by 5%.
Fluctuations in Currency and Commodity Markets The demand for the dollar caused the euro to experience its largest daily decline against the dollar since March 2020. The EUR/USD pair fell by 2% to 1.07. Gold prices pulled back by 1.3% during the day, dropping to $2,700. Silver, which has sharply declined since last week, fell 2.5% in today's trading, reaching the $31 range. In the commodities market, a pullback caused average oil prices to decrease by about 1.5%, with Brent futures falling below $75 and WTI futures dropping to $70.