The market opened strong in response to the news of a Donald Trump presidency Wednesday morning, following widespread panic among investors who bet heavily on a Hillary Clinton win.
It has been no secret that the markets were favorable to Clinton. The U.S. stock market soared 300 points following FBI Director James Comey’s announcement that the FBI cleared Clinton in the recent email investigation Sunday.
Financial experts were predicting that markets would drop as much as 10 percent if Trump were to win in the final moments leading up to election night. Betting markets even had Clinton winning big just three days before the election.
While domestic and global markets tanked by hundreds of points on Tuesday as President-elect Trump’s chances of winning the election rose, things settled out Wednesday morning as the market opened with an over 2 percent rise from closing Tuesday.
One reason the market didn’t react with such volatility this morning is the fact that Trump economic and tax plans promise to grow the economy and cut taxes substantially. (RELATED: Which Candidate Is Better For Your Bottom Line: Trump Or Clinton?)
Globally, financial and currency markets are not favoring as well as the United States. The U.S. dollar rose steadily Wednesday morning, but the Mexican Peso dropped over 10 percent in reaction to a Trump presidency. Markets in Japan and Australia also tanked in reaction to the news.
Gold futures were up as much as 2 percent.
The banking industry reacted positively Wednesday morning to the Trump news, as Bank of America, Goldman Sachs and JP Morgan Chase are all up substantially. Goldman, the banking institution that shelled out hundreds of thousands of dollars in paid speeches for Clinton, stocks were up over 5 percent as of 11:27 a.m. Wednesday.
Bond markets, which are typically skittish due to uncertainty, are up almost 2 percent.
Overall, it is safe to say that while financial experts were hedging heavily on a Clinton victory and predicting a doomsday scenario in the market, the markets showed us that they were just fine Wednesday morning.
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