Will S&P 500 Rally Over 20% Due to the US Presidential Election?
S&P 500, Dow Jones futures at record high as Trump elected US president. &P 500, Dow open at record high as Trump wins U.S. presidency.
[:en]S&P 500 Futures Climb in Premarket Trading[:]
Jay Hatfield, the Chief Executive Officer of Infrastructure Capital Advisers, stated in a note that the S&P 500 is likely to experience significant gains as a result of the fact that Donald Trump appears to be on track to return to the White House.
On November 6, early, Trump Media & Technology Group Corp. DJT -1.16% (DJT) was up 36.3% in pre-market trading, and Globus Medical Inc. GMED +1.15% (GMED) was up 13.7%.
Discover Financial Services DFS +1.82% (DFS), Tesla Inc. TSLA +3.54% (TSLA), and Synchrony Financial SYF +3.20% (SYF) were all posting gains of at least 12%. In early trading, Exact Sciences Corp. (EXAS) and Super Micro Computer Inc. (SMCI) had posted declines, falling 24.4% and 15.8%, respectively.
We are revising our S&P 500 year-end target for 2025 to 7,000 due to the high probability of a Trump victory in these US elections. Hatfield stated that the firm’s goal for the end of 2024 is likely to be significantly exceeded, as it is based on the assumption of a more favorable business environment and an expansion of the S&P multiple to 22 times profits, as well as an effective lowering of the corporate tax rate to 18%. From its closing price of 5,782.76 on Tuesday, a surge above 7,000 would represent a surge of over 21%.
As per this hour, the key takeaways include:
- Premarket trading for Trump Media & Technology Group’s (the parent company of Trump’s Truth Social network) shares increased to over $42, a gain of over 23.6%, following Tuesday’s negative closing price.
- In contrast to the tech-focused Nasdaq index, the S&P 500 futures increased by 2.23%.
- In early Wednesday premarket trade, Dow Futures were up over 1,100 points, or almost 2.7% from market close.
- Shortly after Trump won the crucial swing states of North Carolina and Georgia, the price of the most valuable cryptocurrency in the world, Bitcoin, reached a record high of over $75,000; however, it has now settled at around $73,500.
Why Does US Market Not Close November 6, 2024?
Wall Street is closed for eleven days in November, however only Thanksgiving occurs on November 28. Weekend holidays fill the next 9 days. On Tuesday, November 5, 2024, the US stock market and other market-related instruments operate as usual. Despite Election not being a federal holiday, some states have designated November 5th a public holiday. States include New York, Maryland, Hawaii, Illinois, and West Virginia. Bank, public, and market holidays are not observed on election day.
