Over the past year, everyone’s been speculating on who would benefit if the former President were to reclaim the White House from Kamala Harris. Now we have some answers.
Following Donald Trump’s victory in the 47th U.S. presidential election, the U.S. dollar index surged above 105.00, as his agenda, full of domestic economic policies, spurred dollar demand and drove the index up 2% in a single day.
This index, which reflects the dollar’s value against six major foreign currencies, hit a four-month high. Trump's policies appear favorable for the dollar, though more factors are in play — especially with the Federal Reserve’s decision on interest rates. A 25-basis-point rate cut is anticipated as part of the ongoing rate reduction cycle from the previous meeting.
Trump’s presidency is also lifting U.S. stocks. The Dow Jones Industrial Average soared 3.6%, or 1,500 points, marking its best day since 2022. The S&P 500 and the Nasdaq Composite both reached record highs, rising 2.5% and 3%, respectively, on Wednesday.
The cryptocurrency market joined the rally too. The OG coin’s market cap rose by 9%, crossing $1.5 trillion for the first time in history. Bitcoin reached a record high above $76,000 per coin, as crypto enthusiasts cheered Trump’s win. ETHUSD jumped over 10% to exceed $2,800, while Dogecoin surged more than 40% before settling under 20 cents. Solana also rallied, climbing above $190 from levels below $170.
Trump’s policies hold big promises for the crypto industry, with plans for lower taxes and more crypto-friendly regulations, as well as initiatives to encourage Bitcoin mining within the U.S.
The last but definitely not least — Tesla shares. Tesla stock powered up 3.5% on Tuesday and positioned for a monster 15% pre-market gain ahead of Wednesday’s opening bell.
How might a Trump victory impact Tesla? It largely comes down to the strong relationship between Trump and Tesla CEO Elon Musk. Musk supported Trump’s campaign with millions and has made his X platform a major political battleground, amplifying his pro-Trump stance. From a business perspective, Trump’s win could mean looser regulations for self-driving cars — critical for the rollout of Tesla’s Cybercabs and Robovans.
Interestingly, Democrats have traditionally championed green tech and electric vehicles. This time, however, Musk seems poised to enter the political arena himself, with discussions about him potentially leading a new Department of Government Efficiency, or DOGE — a playful nod to his favorite cryptocurrency.
