U.S. stock index futures soared in the early hours of Wednesday, building on overnight gains as former President Donald Trump appeared on the verge of winning the election against Vice President Kamala Harris. As of 0245 ET, S&P 500 futures ( SPX ) were +1.80% , while Nasdaq 100 futures ( US100:IND ) were +1.62% . Dow futures ( INDU ) were +2.02% . Three of the crucial seven swing states - N.C., Ga. and Pa. - have been called in favor of Trump. As per a live election tracker by the Associated Press , he had secured 267 electoral votes while Harris had 224. Trump needs just three more votes to win. The Republican candidate was already celebrating . "I want to thank the American people for the extraordinary honor of being elected your 47th president," he told supporters in Fla. Trump trades flourished. In the fixed-income markets, U.S. Treasury yields jumped as bonds were dumped. The benchmark 10-year yield ( US10Y ) was up 10 basis points to 4.38%, while the shorter-end, more rate-sensitive 2-year yield ( US2Y ) was up 4 basis points to 4.24%. For more, see how Treasury yields have done across the curve on the Seeking Alpha bond page. Meanwhile, the U.S. dollar index ( DXY ) climbed +1.61% to its highest level since July. The currency is expected to benefit from a low-tax and high-tariff environment under a potential Trump administration. Bitcoin ( BTC-USD ) undoubtedly say the most dramatic reaction. The world's largest cryptocurrency smashed past the $74K level for the first time ever, and ever so briefly even surpassed the $75K mark. The crypto industry has been embraced by Trump in his election campaign. The three major U.S. stock indexes on Tuesday staged a broad advance , with each ending more than 1% higher ahead of the election count. U.S. equities have been remarkably resilient to the usual volatility that an election year can bring. The 2024 election season has been full of twists and turns and has, at times, been extremely divisive. History shows that the benchmark S&P 500 ( SP500 ) for the most part gains in a year after an Election Day. "Irrespective of who wins the presidency, strong seasonals favor stocks from now to year-end, especially since a blue sweep is not in the cards. The most likely scenario is a mixed Washington, with leaders on both sides of the aisle needing to compromise to get things done. However, a red sweep is still possible, which will help equities via pro-growth policies that likely incorporate aggressive onshoring ambitions, lower corporate taxes, and a subdued regulatory landscape," José Torres, senior economist at Interactive Brokers, said. "In conclusion, however, bond yields are critical to watch as investors and traders examine the inflationary, deficit and activity impacts of incoming policies," Torres added. The inexorable bull run in U.S. stocks did take a bit of a breather the last two weeks, as some caution finally appeared to seep into sentiment ahead of the election outcome. Of note, the Cboe Volatility Index ( VIX ) - widely seen as Wall Street's fear and volatility gauge - posted its highest closing level pre-Election Day since 1990 outside the bear market in 2000, the financial crisis in 2008 and the COVID-19 pandemic crash in 2020. In moves across other assets, WTI crude oil futures ( CL1:COM ) extended losses, last -1.23% , while Brent crude futures ( CO1:COM ) - the international oil benchmark - also followed suit, last -1.24% . Dear readers : We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion . More on the markets Should We Stay On The Bull Train? November FOMC Meeting: With Election In Focus, Fed May Opt For A 'Safe' 25 Bps Cut Fed Reaches $2 Trillion In Quantitative Tightening As It Cuts Rates Nvidia retakes world’s most-valuable company title from Apple as market cap climbs How NOT To Trade Election Day
