Stocks on US exchanges rose incredible thereby lifting the major indices on Wednesday or Thursday (11/10/2016) morning. It is certainly surprising that previous global investors tend to sell, respond to the current US political situation.
The market reversed to positive territory after experiencing volatility, following the Donald Trump’s victory speech, who won the US presidential election against Democrat presidential candidate Hillary Clinton.
The Dow Jones ended rose 257 points, or 1.4 percent after index futures fell 800 points in late trading. While the broad-market Standard & Poor’s 500 ended up 1.1 percent, and the Nasdaq composite index rose 1.2 percent in late trading.
There are number of theories explain that Wall Street has strengthened following the victory Trump is surprising.
First, the weakening of the market post-Brexit June followed by the strengthening of the market thereafter. Second, Trump pronounced victory speech gave rise to hopes that his political mileage will be more moderate than before. Furthermore, the US economy is indeed support for the strengthening of the market.
Market players also try to evaluate the economic potential arising from the winning Trump, who plans to cut taxes and boost infrastructure for the US economy moving.
“Rising prospect of tax cuts and pro-growth policies by Trump backed by Republicans have made the market reversed higher,” said Martin Gilbert, CEO of Aberdeen Asset Management.