Dow Jones Industrial Average Plunges As Trump Wins the Race to White House
Dow Jones (DJIA) Futures Crash on Clinton’s Shock Defeat
Dow Jones and global markets are staring at big losses as they were caught unawares by the unexpected win of Donald Trump, who is set to become the 45th president of the United States. It was a clean sweep by the Republicans.
Earlier, Dow futures had dropped more than 500 points as the election results pointed to a big lead by Donald Trump against Hillary Clinton. Moreover, S&P 500 futures and Nasdaq 100 futures had hit the trading limit by plunging about five percent.
The Dow Jones futures had fallen by more than 700 points as Trump won the key states of Ohio, North Carolina, and Florida. The markets were prepared for a Clinton win and with the Democratic nominee lagging in key states, there was more confusion. Bonds rallied, stock markets tanked across the globe, and the Mexican peso fell more than 10% against the U.S. dollar.
The Dow Jones Industrial Average (DJIA) is likely to see lot of volatility and shall wait for few sentiment-boosting indicators from Donald Trump. Trump’s statements on freedom of media, trade with Mexico, and issues with immigrants have been contentious topics in his presidential campaign. This is what is bothering the markets. It is highly probable that geopolitical tensions shall rise under a Trump presidency.
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Earlier, billionaire Wilbur Ross, a senior policy advisor to the Donald Trump campaign, had said on CNBC that Clinton’s “3rd term” of Obama would lead to a U.S. recession. He further added that the stock market would warm up to a Trump presidency, “As soon as Trump announces his Cabinet choices, the market will feel better.” (Source: “Clinton’s ‘3rd term’ of Obama would lead to US recession, argues billionaire Wilbur Ross,” CNBC, November 8, 2016.)
He also stated that Trump has a record of making good personal choices, citing examples such as the Republican nominee’s proposed list of Supreme Court picks and bringing Indiana Governor Mike Pence on board as his vice presidential choice.
Just last week, CNBC also interviewed Nassim Taleb, the author of “The Black Swan” and “Antifragile”, who said that Trump won’t do anything apocalyptic. He added that Trump is more of a bluster rather than a disruptor. (Source: “Nassim Taleb: Trump won’t do anything apocolyptic,” CNBC, November 3, 2016.)
All eyes shall be tracking Dow Jones futures as the European markets are also likely to trade lower. As the markets across the world prepare for more uncertainties coming ahead, it is not going be a smooth ride for the DJIA and S&P 500. Increased global turmoil is not good news for the Wall Street.