U.S. stock index futures carried overnight gains into Wednesday early morning, as Donald Trump inched closer to victory against Vice President Kamala Harris in the presidential election after two key battleground states were called in favor of the former President. As of 0115 ET, S&P 500 futures ( SPX ) were +1.21% , while Nasdaq 100 futures ( US100:IND ) were +1.25% . Dow futures ( INDU ) were +1.34% . Wall Street and the world waits with bated breath for the culmination of the race to the White House. So far, as per a live election tracker by the Associated Press , Trump had secured 247 electoral votes while Harris had 210. Either candidate requires 270 to win. The swing states of N.C. and Ga. have both been called for Trump. Before that, both candidates had won the states they had been expected to win. 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 14 basis points to 4.43%, while the shorter-end, more rate-sensitive 2-year yield ( US2Y ) was up 9 basis points to 4.28%. 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 +1.55% 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 earlier staged a broad advance during market hours, with each ending more than 1% higher. 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 -2.26% , while Brent crude futures ( CO1:COM ) - the international oil benchmark - also followed suit, last -2.40% . 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
