U.S. Stocks Rise, Treasuries Fall as Trump Win Spurs Growth Bets
- S&P 500 bounces back after futures contracts plunge 5%
- Treasury 10-year yield tops 2% for first time since January
How Did Investors Hedge Ahead of the Election?
U.S. stocks and the dollar rose as heavily hedged markets bounced back from the worst selling in four months amid speculation Donald Trump and a Republican-controlled Congress will pursue business-friendly policies. Treasuries plunged, while copper led gains in commodities.
Following a rout in equity futures overnight, the S&P 500 Index rebounded as waning concern over stronger regulatory scrutiny spurred rallies in drugmakers and banks. Treasury yields topped 2 percent on wagers the Republican will ramp up spending. The greenback rose the most since the day after Brexit, Mexico’s peso sank amid prospects the integration with the U.S. will unravel, while the yen erased gains. Gold had its busiest-ever trading day.