Stock futures surged and Treasury yields climbed sharply after Donald Trump’s decisive election victory, as traders piled into trades that are seen as aligning with the former president and president-elect’s economic agenda.
Investors scrambled to position themselves for new tariffs, tax cuts, and big shifts in energy and regulatory policy.
Futures on all three major indexes advanced in premarket trading. S&P 500 futures rose over 2 percent, while the Dow Jones Industrial Average futures gained close to 3 percent and the Nasdaq Composite climbed 1.3 percent. The Russell 2000—a barometer for smaller, economically sensitive companies—rallied nearly 6 percent, reflecting optimism in the domestic economy.
The surge in stocks was reminiscent to the market’s reaction to Trump’s surprise victory in 2016.