Money moved in predictable waves across global markets today after a tumultuous U.S. presidential election provided a sooner-than-expected result. Why it matters: Investors, buoyed now by improved certainty in D.

Many gained on the prospect of lower taxes and the relief from uncertainty. But bonds declined on forecasts of bigger deficits.

While a path toward the 270 Electoral College votes needed to take the White House remained in reach for both U.S. presidential candidates Tuesday, a rally in Dow futures and selloff in U.S. government debt indicated market participants were prepared for a victory by Republican Donald Trump.

Risk appetite returned with gluttonous abandon on Wednesday, as the tech-heavy Nasdaq Composite added 3% to 18,983 and the small-cap Russell 2000 popped nearly 6%. The blue chip Dow Jones Industrial Average rallied 3.6%, or 1,508 points to 43,729, while the broader S&P 500 rose 2.5% to 5,929.

A slew of trades around the world tied to Donald Trump’s rising presidential prospects notched decisive moves, with stock futures extending gains, Treasury yields jumping and the dollar up the most since February 2023.

The Dow Jones Industrial Average surged more than 1,300 points in early trading Wednesday as investors registered enthusiasm for a second Donald Trump presidency. The Nasdaq and S&P 500 were both up more modestly,

Trump’s proposal to reduce the corporate tax rate for domestic production from 21 per cent to 15 per cent could benefit IT services demand by alleviating budgetary constraints for US firms.