The dollar index—a benchmark measuring the currency against six major global currencies, including the euro and yen—jumped 1.25%, reaching a four-month high.
However, not all sectors benefited; renewable energy stocks dropped, reflecting investor apprehensions about potential shifts in Biden’s policy.
Pre-Election Trading Trends
Even before Trump’s win, investors were pouring vast sums into major S&P 500 stocks, leading to unprecedented valuations.
The top 10 companies by market cap—such as Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Berkshire Hathaway, Tesla, and Broadcom—now trade at an average of 49.3 times their per-share earnings from the past year. This is substantially above historical averages.
By Monday’s close, the S&P 500 itself was trading at 26.1 times earnings, underscoring the high expectations investors placed on a Republican victory.
Trump Trades
Trump’s own media company, Trump Media & Technology Group, also saw a rise in stock prices. Following a report of significant quarterly losses, the company’s shares climbed, as much as, 30% before fluctuating amid another volatile trading session.
