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Here are some of the sectors – and stocks – rising after a Trump victory

Here are some of the sectors – and stocks – rising after a Trump victory

1 minute, 30 seconds Read

Key insights

  • Financial services, industrials and energy sectors, as well as Tesla, led the S&P 500's rally on Wednesday.
  • Companies that issue credit cards performed particularly well, including Discover Financial Services and Synchrony Financial.
  • Other winners include cruise lines, commercial transit companies and energy companies.

The S&P 500 rose on Wednesday, buoyed by strength from credit card issuer Tesla (TSLA) and the industrial and energy sectors in the first trading session after Election Day.

Credit card companies and banks outperformed the index, with shares of Discover Financial Services (DFS) and Synchrony Financial (SYF), known for their retail-branded credit cards, rising about 17% since Tuesday's close. Capital One (COF) and Discover are planning a merger, and some of the rise in their shares is likely due to optimism that the deal will be completed under a second Donald Trump administration.

Shares of other financial services companies rose double digits, including Keycorp (KEY), Goldman Sachs Group (GS), Wells Fargo & Company (WFC) and Morgan Stanley (MS).

The energy sector also performed well. Share prices of EQT (EQT), a natural gas producer, and Baker Hughes (BKR), a provider of services to the oil and energy industries, rose about 8%. Trump is widely expected to advocate policies that would benefit American oil companies.

Tesla shares rose about 13%, outpacing gains by several consumer discretionary hotel companies. Elon Musk, CEO of the electric vehicle maker, campaigned for Trump and contributed to a super PAC that supported him.

The sector was otherwise strengthened by hotel companies. Shares of several cruise operators, including Carnival (CCL), Norwegian Cruise Line (NCLH) and Royal Caribbean Cruises (RCL), rose on Wednesday.

The industrial sector also grew. Shares of Old Dominion Freight Line (ODFL), a trucking company, rose nearly 10%. Share prices of other commercial transit companies rose, including Howmet Aerospace (HWM) and Norfolk Southern (NSC).

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