The Trump trade sparks a rally in stocks ranging from banks to cryptocurrencies to DJT

Donald Trump's election victory dominated stock market action early Wednesday, with a broad “Trump trade” driving stocks, cryptocurrencies and other issues higher in a broad rally.

“The market is initially focused on all possible positive aspects of a Trump candidacy, such as: B. stricter regulations and lower taxes,” Keith Lerner, Truist’s co-chief investment officer, told Yahoo Finance.

Trades that had frequently moved with Donald Trump's betting odds over the past month rose as Trump cruised to a victory over Kamala Harris in the presidential election.

Shares of Trump Media & Technology Group (DJT) rose over 30% early Wednesday, then gave up those gains to close up about 6%. The stock, in which Trump owns shares worth billions of dollars, had risen sharply over the course of Tuesday evening as a Trump victory became increasingly likely.

Other trades that appeared to be in line with Trump's chances of winning also rose sharply. Bitcoin (BTC-USD) rose to a new record high overnight as Trump emerged as the next president-elect. Investors had viewed Trump as the more crypto-friendly candidate heading into the election.

The world's largest cryptocurrency rose above $76,000 per coin for the first time on Wednesday. Meltem Demirors, a general partner at Crucible Capital, told Yahoo Finance that the asset largely tracked Trump's betting odds 1:1 during the election cycle, a sign that investors were dealing with a lot of “indecision” in the crypto market.

In July, Trump attended a Bitcoin conference in Nashville to take voters to court.

His promises to the industry included appointing a crypto presidential advisory board, firing SEC Chairman Gary Gensler, and creating a “strategic national Bitcoin stockpile.”

The price surge in Bitcoin and Ethereum (ETH-USD), which gained more than 10% on Wednesday, was accompanied by a rise in crypto-related stocks.

MicroStrategy (MSTR), which holds a significant amount of Bitcoin on its balance sheet, rose more than 13%. Crypto exchange Coinbase (COIN) also rose more than 31%, while Robinhood (HOOD), which offers cryptocurrency trading on its platform, gained almost 20%.

Investor support for the financial sector was also one of the prominent topics on Wednesday.

The SPDR Financials Sector ETF (XLF), which consists of some of the country's largest banks, rose more than 6%, posting its best day in two years. Big banks like JPMorgan Chase (JPM), Bank of America (BAC), Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C) and Morgan Stanley (MS) all gained between 7% and 13%.

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