US stock markets and Bitcoin hit record highs after former President Donald Trump’s stunning re-election to the White House, sparking optimism among investors. Wall Street surged to new heights, with major indexes posting significant gains. The dollar also soared, marking its biggest daily rise in eight years.
Record-Breaking Performance on Wall Street
The victory ignited a rally on the stock market, where US shares hit record levels. The major indexes, particularly banks, saw notable performance boosts. The dollar surged by approximately 1.65% against a basket of global currencies, including the euro, British pound, and Japanese yen. The pound fell to its lowest value since August, dropping 1.16%, while the euro plunged by 1.89% to reach its lowest point since June.
Bitcoin Reaches All-Time Highs
Bitcoin also reached new heights, with its value jumping over $6,600 to hit an all-time high of $75,999.04. This surge in Bitcoin’s price came as Trump reiterated his pro-cryptocurrency stance during the campaign. In stark contrast to the Biden administration’s crackdown on crypto firms, Trump vowed to make the US the “bitcoin superpower of the world” and promised to take aggressive action to support the crypto industry. Investors, including Elon Musk, who has long championed digital currencies, saw their assets surge with Tesla’s stock rising by over 14%.
Concerns Over Trump’s Trade Policies
Despite the positive market reactions, economists warned that Trump’s trade policies, particularly his plans to impose higher tariffs and cut taxes, could cause global economic shocks. Countries such as the UK and the Eurozone are likely to be impacted by the protectionist measures Trump has pledged to enact. UK Chancellor Rachel Reeves emphasized that open global trade benefits all economies, including the US.
Global Economic Implications
Trade tariffs, especially those targeting China, are expected to disrupt global markets. Some economists predict that the UK could experience a slowdown in economic growth, dropping from a forecasted 1.2% to just 0.4% by 2025. Moreover, Trump’s stance on Taiwan and the tech industry’s reliance on Taiwanese chip production adds further uncertainty to global trade dynamics.
Investors will also be watching the US Federal Reserve closely this week as they announce new interest rate decisions, which could further influence market trends.
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