Stocks rallied on Wednesday following a chaotic night in markets that ended with a surprise victory for Donald Trump in the US presidential election
The Nasdaq index was 1.1% higher at 5,251.07 points, the Dow Jones was up 1.4% at 18,589.69 and the S&P 500 was up 1.1% at 2,163.26 points.
“The market feels the uncertainty is now over, even though many people are not happy with who won,” said Sam Stovall, chief investment strategist at CFRA. “That ends up represent ating a good buying opportunity.”
In early morning trade, health care sector companies led the gainers, surging 2.8 per cent. Investors had feared Ms Clinton would implement curbs on drug pricing increases that could hurt drugmakers and biotechnology companies. Pfizer jumped 8.2 per cent, the biggest gain in the Dow Jones industrial average.
“Clearly, the market and investors underestimated the prospect of a win by him,”
“However, they’ve just as quickly come to realize that the implications for US financial assets aren’t as dire as maybe some of the same folks that really didn’t give him much of a chance are warning about after the election,”
-said Mark Heppenstall, the chief investment officer at Penn Mutual Asset Management, where he oversees $20 billion in assets.
Suppliers of raw materials and machinery also did well, buoyed by Mr Trump’s plans to invest heavily in US infrastructure projects. Caterpillar Inc was up 7.72% while United States Steel Corp jumped 17.17%.