U.S. Stocks Could Witness a Strong Opening on Wednesday as Former President Donald Trump Emerges Victorious

With Trump returning as the U.S. President, futures of all three major indices were strongly in the green on Wednesday, pointing to upbeat sentiment on Wall Street.

U.S. stock futures pointed to a strong opening on Wednesday as former President Donald Trump emerged victorious in several key swing states.

With Trump returning as the U.S. President, futures of all three major indices were strongly in the green on Wednesday, pointing to upbeat sentiment on Wall Street.

The Associated Press called a Republican win in three out of seven key swing states – North Carolina, Pennsylvania, Georgia, and Wisconsin. While Michigan and Arizona are still in play, trends lean toward Trump here, too.

Shares of Trump's social media company, Trump Media & Technology Group Corp. (NYSE:DJT), and his billionaire ally, Elon Musk's Tesla Inc. (NASDAQ:TSLA), surged in premarket trading on Wednesday.

While Trump Media shares were up over 33% in premarket trading, Tesla shares were up over 14% at the time of writing.

In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) gained 2.33% to $590.23 and the Invesco QQQ ETF (NASDAQ:QQQ) rose 1.82% to $501.15, according to Benzinga Pro data.

Cues From Last Session:

All three major indices ended the Tuesday session on a positive note, with the tech-heavy Nasdaq Composite surging the most.

Oil prices eased at the prospect of a Trump win resulting in a stronger U.S. dollar.

Treasury yields popped at the prospect of a Trump victory. The benchmark 10-year yield rose to levels last seen in July.

According to the CRFB's central estimate, Trump would increase the national debt by $7.75 trillion between 2026 and 2035, leading the government to issue more bonds to fund the deficit.

All sectors on the S&P 500 closed on a positive note, with consumer discretionary, industrials, and utilities stocks recording the biggest gains on Tuesday.

It's not just the equities that surged – top cryptocurrency Bitcoin (CRYPTO: BTC) also surged to a new all-time high of $75,000 – at the time of writing, Bitcoin prices cooled a little to trade at $73,737, up more than 7% in the last 24 hours.

Insights From Analysts:

Veteran investor Mark Mobius, chairman of Mobius Emerging Opportunities Fund, told CNBC that a Trump victory would be good for the U.S. economy.

"It looks like a Trump presidential win but also a win for Republicans in House and Senate. If that happens, you're going to see the U.S. economy really taking off," he said.

Ryan Detrick, chief market strategist at Carson Group, believes that the stage is now set for U.S. equities to rally through the year-end.

"Once we kind of get through the election uncertainty… we do think that could potentially be the springboard to a potential another strong November," Detrick told CNBC in an interview.

"This economy is still strong. This is still a bull market."

Here's my full interview with @ScottWapnerCNBC on @CNBCClosingBell today. * Why a rally is likely once we get the election out of the way* The Fed could be what upsets markets this week* Tech is pricey, but there are some cheap areas for investors https://t.co/OHRImYEaCl

Stephen Dainton, President of Barclays Bank PLC and Head of Investment Bank Management, told the Wall Street Journal that the markets had already decided that Trump would win.

“The markets are now trading full-on Trump trade."

Echoing Detrick's bull run thesis, WisdomTree and Wharton School economist Jeremy Siegel said the equity surge could continue.

“In the near term, stock markets seem poised for further gains, bolstered by resilient earnings and steady economic fundamentals, while bond markets will likely grapple with higher yields and volatility ahead,” he said.

“The bull market in stocks looks set to continue, while bonds face a rougher road.”

On the economic data front, the trade deficit in the U.S. increased to $84.4 billion in September, recording the highest level since April 2022, and above market estimates of a $84.1 billion gap, versus a revised $70.8 billion gap in August.

The ISM services PMI rose to 56 in October, recording the highest reading since Aug. 2022.

See Also: How To Trade Futures

Upcoming Economic Data

Wednesday's economic calendar is light, with only S&P scheduled to release the final U.S. services purchasing manager’s index (PMI) at 9:45 a.m. ET.

Stocks In Focus: