With the dust settled after the US election, the 'Trump trade' has sparked a wave in the capital markets, with funds flowing towards potential beneficiaries of Republican policies, and selling off expected losers.

On Wednesday, the three major U.S. stock indexes hit record highs, among which$S&P 500 Index (.SPX.US)$rose by 2.5%, marking the largest post-election day increase in history, with technology stocks leading the way,$NASDAQ 100 Index (.NDX.US)$rose by about 2.7%.

The Dow Jones Industrial Average closely tied to the economic cycle rose 3.57%, marking its largest increase in two years. Investors are betting that Trump will benefit economic growth, and Republican control of Congress will pave the way for tax cuts and regulatory relaxations. The Russell 2000 small-cap index rose approximately 5.8%, reflecting optimism for tax cuts and regulatory easing for small businesses.

Among individual stocks, $Tesla (TSLA.US)$ undoubtedly emerged as the biggest winner, with its stock price skyrocketing nearly 15% overnight to reach the highest level since July 2023, boosting Elon Musk's personal wealth by 15 billion USD overnight.

In the US stock sectors, banks, private equity, mortgage finance, the financial industry, oil & gas, cryptos, and prison-related stocks led the gains, while sectors affected by tariffs such as solar power and other renewable energies, European autos and shipping, and real estate emerged as the biggest losers.

Big winners: finance, oil & gas, and cryptos

• Banks

Overnight, bank of america stocks surged, $KBW Nasdaq Bank Index (.BKX.US)$ Increased by 10.7%, reaching the highest level since the beginning of 2022. $JPMorgan (JPM.US)$Please use your Futubull account to access the feature.$Goldman Sachs (GS.US)$ and $Morgan Stanley (MS.US)$ The stock price has risen by over 11%. $Bank of America (BAC.US)$ and $Citigroup (C.US)$ Increased by 8.4% and 8.5% respectively.

Investors are betting that the Trump administration will maintain high interest rates for longer, and the soaring US bond yields have also helped boost bank stocks. Higher yields mean higher net interest income for banks.

In addition, investors expect the Trump administration to relax regulations on the financial industry, including further weakening the rules on bank capital reserves. The Biden administration's policy limiting late fees on credit cards may also be abolished.

• Private equity and real estate investment trusts

Private equity groups are also expected to benefit from the Trump administration's more relaxed policies.MergerRegulatory-wise, both Apollo Global and KKR saw their stock prices rise by over 10%, while Blackstone Group increased by nearly 5%.

Shares of the largest U.S. mortgage agencies, Fannie Mae and $FREDDIE MAC (FMCC.US)$Freddie Mac, surged by over 37% as investors bet on the potential privatization of these two institutions being driven by Trump's administration.

• Oil & gas

American oil giant $Exxon Mobil (XOM.US)$rose by approximately 2%.$Chevron (CVX.US)$Rose by 2.8%; the largest natural gas producer in the USA $EQT Corp (EQT.US)$ Rose by 7.8%, developer of LNG export terminals$NextDecade (NEXT.US)$Rose by over 15%.

During the campaign, Trump frequently favored oil companies, promising to overturn most of Biden's environmental and climate agenda.

• Cryptos and Prisons

Cryptocurrency-related assets surged due to the expectation that the Trump administration will support the industry.$Bitcoin (BTC.CC)$Rising nearly 8%, approaching a historical high of $75,000, cryptocurrencies exchange$Coinbase (COIN.US)$ Global stocks rose by 31%.

Private prison stocks surged to multi-year highs as the market bet on an increase in government outsourcing incarceration rates. Geo Group rose 42%, and CoreCivic rose 29% after strong quarterly performance announced on Wednesday.

Big losers: new energy, shipping industry, European autos, real estate

• Renewable energy

In contrast, due to concerns that Trump may abolish the tax breaks and subsidies of the Biden administration, new energy companies have been hit hard, tracking the world's largest clean energy companies.$S&P Global (SPGI.US)$Clean energy index fell by about 6%.

European wind energy companies were hit hard, with the world's largest offshore wind developer, Denmark's Ørsted, falling by 14.5%, and Denmark's turbine manufacturer Vestas dropping by over 13%.

The Biden administration pushed for the deployment of offshore wind power, setting a goal for the U.S. to deploy 30 gigawatts of offshore wind by 2030 and exceed 110 gigawatts by 2050, but Trump pledged to stop this project on the "first day" of the new government.

Solar companies' stock prices also took a sharp downturn, with the U.S. solar ETF plummeting over 10%.

• Industry affected by tariffs

Trump threatened to impose high tariffs on imported goods, affecting the stock prices of retailers, auto manufacturers, and shipping companies.

Companies manufacturing goods overseas in the USA are experiencing a decrease in stock prices due to concerns about tariffs, including $Nike (NKE.US)$and$Target (TGT.US)$N/A.$Best Buy (BBY.US)$and other companies are all seeing declines in their stock prices.

European auto manufacturers are also experiencing declines, with Germany $BAYER MOTOREN WERK (BMWYY.US)$ and $VOLKSWAGEN A G (VWAGY.US)$ Once fell by over 8% and 5% respectively, the Stoxx 600 Automobiles and Parts Index dropped by 2%.

The world's largest shipping companies also faced pressure, with Denmark's AP Møller-Maersk falling nearly 8% and Germany's Hapag-Lloyd dropping almost 9%. Analyst Petter Haugen from ABG Sundal Collier stated that global trade tensions would reduce shipping demand, leading to sell-offs.

• real estate

On Wednesday, real estate was the worst-performing S&P 500 sector, dropping 2.6%. Real estate developers heavily rely on debt financing, and as bond yields rise, borrowing costs will increase. Homebuilders also performed poorly, with investors expecting higher mortgage rates to dampen demand.

Owns data storage facilities across the United States$Iron Mountain (IRM.US)$Wednesday's nearly 9% plunge, owning and operating communication infrastructure $American Tower Corp (AMT.US)$ and $Crown Castle (CCI.US)$ both fell by over 7% and nearly 5%.

In addition,$Public Storage (PSA.US)$ and $Extra Space Storage Inc (EXR.US)$ Entities in the storage sector all fell by more than 4%. Commercial real estate trust funds $Realty Income (O.US)$ fell by about 3%.

Editor/Somer