Post-Election Rally

November 6, 2024: the "fifth-best one-day showing ever"

The stock market rocketed higher over Donald Trump's clear-cut victory last night. [bold added]

Wall Street has rarely been more excited by an election.

U.S. stocks’ capitalization rose by $1.62 trillion on Wednesday, their fifth-best one-day showing ever, following Donald Trump’s decisive election victory. The surge highlights the opportunity that investors, bankers and others in finance are hoping to embrace over four years of tax cuts, deregulation and economic expansion.

While all sectors benefited, investors were particularly enthusiastic about the possibility of a lenient antitrust regime and a less stringent regulatory environment:

Dealmakers expect mergers and acquisitions to come roaring back, with the installation of business-friendly regulators replacing those backed by Sen. Elizabeth Warren (D., Mass.), a noted dealmaking foe. Goldman Sachs and Morgan Stanley were among the strongest performers on Wednesday; those firms are among the most deal-oriented....

Among the biggest beneficiaries of a Trump administration are U.S. banks, a group that has been under regulatory scrutiny that is likely to ease in the next four years.

Bank stocks surged Wednesday in a wager that a strong economy, increased dealmaking and lighter regulation will spur higher profits. Some of the firms that have been under the most pressure from their overseers during the Biden administration surged. Wells Fargo jumped 13% to a new high. Goldman Sachs and Morgan Stanley both rose more than 10%.

IMHO, the stock market is moving too fast. Staffing key positions will not happen immediately, plus senior and mid-level positions are filled with bureaucrats who not only do not support but actively resist Mr. Trump's policies, as we saw during his first term. I won't be a buyer for at least several weeks.