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S&P 500, Dow Hit Record Highs After Trump Win; Fear Index Drops 20%

The S&P 500 and Dow Jones Industrial Average surged to record levels on Wednesday after Donald Trump was elected as the 47th U.S. president.

In Congress, Republicans clinched a majority in the Senate, while the House race remains close. As of Wednesday morning’s tabulations, Republicans held 198 seats versus 180 for Democrats.

The S&P 500 index, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), climbed 2% to 5,900 points, while the Dow soared over 3% to 43,500 points. The blue-chip index, monitored through the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), marked its biggest single-day gain since November 2022.

The financials and industrials sectors were the top performers, up 5.2% and 3%, respectively.

The tech-heavy Nasdaq 100 witnessed smaller gains, up 1.8%, while small-cap stocks skyrocketed, with the Russell 2000 index spiking over 5%.

The CBOE Volatility Index (VIX), often called the “fear gauge,” plummeted 22%, indicating waning investor concerns amid post-election optimism.

Investors are responding positively to the prospect of more lenient tax policies under the upcoming Trump administration, though inflation risks and ...