U.S. stock markets soared to record highs, and the dollar saw its fastest rally since the Brexit referendum following Donald Trump’s election victory.
The Dow Jones Industrial Average jumped 3.3% to a record peak of 43,614.51 on Wall Street, marking its largest single-day gain in two years. The S&P 500 also rose by 2.1% to 5,905.60, setting it on course for its 48th record close this year.
The Nasdaq Composite, focused on tech, climbed 2.5% to 18,894.30, while the Russell 2000 index of smaller U.S. companies surged 4.9%, marking its strongest performance this year.
This rally is part of a series of so-called ‘Trump trades’ sweeping the markets, with the dollar rising the most since 2020 against major global currencies and Bitcoin hitting a record high.
The dollar index climbed nearly 2% at one point, its biggest rise since the 2016 EU referendum.
In Europe, stocks surrendered earlier gains over concerns of a potential tariff war from the Trump administration, which could dampen growth. The FTSE 100 rose 0.2%, after initially climbing 1.6%, while the CAC 40 in Paris, the DAX in Frankfurt, and the FTSE MIB in Milan all moved lower.
