Newspaper article St Louis Post-Dispatch (MO)

U.S. Stocks Surge Following Trump Victory; Bond Prices Tumble

Newspaper article St Louis Post-Dispatch (MO)

U.S. Stocks Surge Following Trump Victory; Bond Prices Tumble

Article excerpt

NEW YORK * It turns out that President Donald Trump may not be bad for the stock market after all.

Asian stock markets stumbled shortly after Trump overtook Hillary Clinton in the presidential vote count early Wednesday. From there, Wall Street appeared set for a slump of its own only it never materialized.

Global financial markets soon steadied as Trump delivered an acceptance speech pledging to unify a deeply divided nation.

And despite wavering in the first hour of trading, U.S. stocks rallied the rest of the day, lifting the Dow Jones industrial average within 50 points of a record high close.

"He took on a remarkably conciliatory posture," said Eric Wiegand, senior portfolio manager at the Private Client Reserve at U.S. Bank. "That went a long way to demonstrating, perhaps for the first time or very few times, his presidential disposition, and gave a greater sense of calm. That's what had an early reprieve in the markets."

The Dow ultimately climbed 256.95 points, or 1.4 percent, to 18,589.69. The average was briefly up 317 points.

The Standard & Poor's 500 index gained 23.70 points, or 1.1 percent, to 2,163.26 The Nasdaq composite index rose 57.58 points, or 1.1 percent, to 5,251.07.

Wall Street had largely seen Clinton as more likely to maintain the status quo, while viewing Trump's policies as less clear.

Investor anxiety ratcheted up in recent weeks as the race tightened, leading to a nine-day slump for the market that ended Monday. By Election Day, the market had mostly bounced back and priced in a Clinton win.

On Wednesday, faced with a president-elect Trump, traders piled into health care and financial stocks sectors seen as likely to struggle under a Clinton administration.

They also sold off safe-haven stocks such as utilities and consumer-focused companies.

Financial companies led the gainers, surging 4.1 percent. Banks and other financial stocks tend to benefit from higher interest rates and less government regulation, two things investors anticipate could happen during a Trump presidency. …

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