On November 7th, with former US President Trump achieving better-than-expected election results, the US market experienced the extreme release of 'Trump trading' sentiment. Combined with the fading uncertainty of the US election, all three major stock indexes hit historic highs in last night's and this morning's trading.

As of Wednesday's close, the S&P 500 index rose by 2.53% to 5929.04 points. According to statistics, this is also the index's best performance on an election day in its history.

(S&P 500 index daily chart, source: TradingView)

Meanwhile, the Nasdaq index rose by 2.95% to 18983.47 points; the Dow Jones Industrial Index rose by 3.57% to 43729.93 points, both hitting record highs.

David Bahnsen, Chief Investment Officer of Bahnsen Group, stated that investor sentiment currently supports growth stocks, regulatory easing, and the market. Investors also assume that M&A activity will increase, more tax reduction measures will be introduced, creating a strong background for the stock market.

According to the latest news, Harris has already delivered a concession speech at Howard University. She stated 'We must accept the election results' and pledged a peaceful transfer of power.

(Source: CBS)

According to the schedule, as the nominal Speaker of the Senate, Harris will also preside over the Electoral College vote on January 6 next year and announce Trump as the 47th President of the USA.

The current US election still leaves one suspense: with Trump winning back the White House and Republicans taking control of the Senate, the ownership of the House of Representatives is still undecided. The results of the competition for the remaining 44 seats are yet to be determined, with Republicans needing to win at least 16 of them.

(Source: Associated Press)

Keith Lerner, Co-Chief Investment Officer at Truist, said many investors are prepared to face a long period of uncertainty and are relieved to gain some clarity relatively easily, which has eased the market. He stated that the market currently seems more focused on the positive aspects of Trump's agenda, with less attention to the potential impact of tariffs and broader policy outcomes.

Which stocks and concepts are experiencing abnormal movements?

In Wednesday's trading, Tesla surged 14.75%, reaching a new high since July 2023. Investors are betting on a bullish era under Trump 2.0 benefiting the business empire of the major financier, Elon Musk.

(Tesla daily chart, Source: TradingView)

During this election cycle, Musk has donated a total of 0.13 billion USD to support Trump. Tesla's market capitalization increased by 119 billion USD in just one day on Wednesday, equivalent to an increase of 15.2 billion USD in Musk's net worth based on his ownership percentage (12.81%).

At the same time, electric vehicle stocks as a whole fell, with Rivian down 8.31% and Lucid down 5.33%.

Another sector that surged was financial stocks, with Goldman Sachs up 13.1%, JPMorgan up 11.54%, Wells Fargo & Co up 13.11%, Morgan Stanley up 11.61%, Bank of America up 8.43%, Citigroup up 8.42%, all hitting historical highs. The first two are also components of the Dow Jones, which is why the index's increase is particularly notable. The market believes that Trump's policies of reducing corporate taxes and regulatory burdens are substantial bullish factors for financial giants.

(Goldman Sachs daily chart, Source: TradingView)

Likewise, most tech giants strengthened due to the positive impact of reduced regulations (as well as personnel changes in the Department of Justice and the Federal Trade Commission). Among them, Nvidia rose 4.07%, Qualcomm rose 4.27%, Google Class A rose 3.99%, Amazon rose 3.80%, Microsoft rose 2.12%, with only Meta and Apple closing down 0.07% and 0.33%.

Due to the less than ideal financial report after market close yesterday and the absence of a clear solution to the delisting crisis, Super Micro Computer continued to decline by 18.05% on Wednesday.

Another noteworthy sector is the cryptocurrency sector. Boosted by Trump's election, Bitcoin set a new historical high on Wednesday. As a result, MicroStrategy closed up 13.17%, and Coinbase closed up 31.11%.

Lastly, as a direct beneficiary stock of being the 'Chairman of a Publicly Listed Company Elected U.S. President,' Trump Media Tech only rose 5.94% on Wednesday.

As the worst performing sector on Wednesday, the photovoltaic and new energy sectors closely related to the 'Harris Victory Concept' plunged. Among them, First Solar fell 10.13%, Enphase Energy fell 16.82%, SolarEdge Technology fell 22.23%, JinkoSolar fell 14.31%.

Chinese concept stocks retreated overall on Wednesday, with the NASDAQ Golden Dragon China Index falling by 1.83%. Alibaba dropped by 2.5%, Baidu by 1.04%, PDD Holdings by 1.29%, JD.com by 3.40%, Bilibili by 4.57%, NIO Inc by 5.3%, Xpeng by 3.98%, and Canaan increased by 12.98%.