Financial expert links market rise to quick election results and Trump’s victory promises

When Donald Trump won the election in 2024, there was a significant rise in the US stock market.

The Dow Jones Industrial Average was up 1,438 points, or 3.4% at one point, while the Nasdaq composite was 2.8% higher.

It is not unusual to see a positive change in the markets after an election is over, but this was an uncharacteristic rise. Stephanie Yates, professor of finance at UAB says it comes down to two factors.

“Number one the markets don’t like uncertainty. When we got an answer to the election question pretty quickly and pretty decisively, that was a very good thing for the markets.” Yates said.

This is what typically causes a spike after the election regardless of the winner. However, it becomes more specific with a Donald Trump victory.

Yates continued, “the second part of it was based on the candidate who won the election, so market participants started to think about what that candidate has promised, what we can see in the future, and how will that affect businesses, how will that affect markets.”

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As for banks and industrials that saw gains on Wednesday, Yates said it mostly had to do with promises of reduced regulations, and it’s hard to say whether the market will continue to develop this way until President Trump takes office , and these promises are fulfilled.

Birmingham residents from both sides of the political spectrum say they are not reading too much into the sudden changes in the stock market.

Jacob Speights said, “it was probably a little more than I expected. I’m sure everything will settle down. I don’t put a lot of thought into it. I don’t look at these things that happened in the last few hours market-wise or purely in terms of interest that this will be the next few months.”

Missie Smith said, “it’s too early to tell because a person can say they’re going to do so much before they get into office, but then when they get into office, it’s changed so they just get everybody’s hopes up like oh , I want to do all this versus when they get in there, they don’t do any of that.”

It’s also important to note that not all stocks rose. There were winners and losers in the stock market after the election, although the general trend is up.