The Dow Jones (+1,17%) broke a record on Thursday on Wall Street, the day after the election unexpectedly, Donald Trump to the presidency, but the Stock market has performed very contrasting as evidenced by a decline of the Nasdaq (-0,81%). According to the final results, the index featured Dow Jones Industrial Average has gained 218,19 points to 18.807,88 points, a level not seen at the fence.
“everybody is amazed that the Stock market is so in form for the past two days,” summarized Bill Lynch of Hinsdale Associates. “I really thought that she would fall in the face of the uncertainties posed by a presidency of Donald Trump… But it is the reverse that happened.”
Then she looked for months to favour the idea of a victory of the democratic party, Hillary Clinton, presented as a guarantor of stability, Wall Street has quickly seemed to take his party to the victory of Mr. Trump, after the election Tuesday.
at the same time, the bond market, considered a safe-haven, collapsed and was reduced further on Thursday, the Treasury yield to 10 years amount to 2,140%, compared to 2,070 per cent on Wednesday evening, and that bills to 30 years at 2,949%, compared to 2,862% previously. “Investors sell bonds to buy shares”, said Peter Cardillo, of First Standard Financial, cautioning, however, that Wall Street would stop their rise as soon as the debt market would affect a floor.
already, even if investors seem willing to focus on those aspects perceived as supportive of the program, Mr. Trump, including a plan to boost infrastructure and large tax cuts, some sectors are hampered by the outcome of the election, in particular in technologies. The Nasdaq, in the green at the opening, even briefly lost more than 2%. “Technology companies have been the major beneficiaries of globalization,” said Jack Ablin of BMO Private Bank, explaining that the protectionism displayed by Mr. Trump would touch them the most.
Another reason for their depression, a lot of groups in the sector such as Apple (-2,81% to 107,76 dollars) and Amazon (-3,84% to 742,25 dollars) had registered a good performance in recent months, prompting investors to take profits for the redirect to the supposed beneficiaries of a presidency, Trump, such as banks or infrastructures. “Apart from all this, there has been no economic news noteworthy to share entries weekly jobless claims, which have again proved to be favorable”, with a more marked decline than expected, was noticed by Mr. Lynch. “The job market continues to be strong.”