Dow hits all-time high after wild day of trading

Dow hits all-time high after wild day of trading
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The Dow Jones industrial index hit an an all-time high Wednesday, reversing a massive drop triggered by President-elect Donald TrumpDonald John TrumpHouse Democrat slams Donald Trump Jr. for ‘serious case of amnesia’ after testimony Skier Lindsey Vonn: I don’t want to represent Trump at Olympics Poll: 4 in 10 Republicans think senior Trump advisers had improper dealings with Russia MORE’s improbable win.

The Dow surged more than 300 points briefly Wednesday afternoon, finishing with a 250-point rise. The Nasdaq and Standards and Poor’s 500 industrial index rose roughly 1 percent each.

Wednesday’s surge reflects a promise of business-friendly, growth-focused policies from Republicans, who gained control of the White House while maintaining control of Congress.

Stocks initially plummeted as Trump’s election became clearer Tuesday night and early Wednesday morning. Dow Jones futures tanked more than 800 points, and trading on Nasdaq and S&P futures was halted until morning open.

Markets struggled to make sense of Trump’s win by sunrise before certain industries posted huge gains. Stocks for private prisons and coal companies boomed, while gun and marijuana company shares fell.

 Those gains reflect a potential break from President Obama’s move away from private prisons and likely repeal of his administration's environmental regulations. Gun stocks typically soar on Democratic talk of gun control laws, reflecting an expected increase in sales. A Republican government would likely create less pressure. 

Marijuana stocks declined largely due to Trump’s lack of clarity on how he’d handle the drug.

The Mexican peso stabilized after overnight declines, trading 19.92 per dollar. Trump’s promise to renegotiate the North American Free Trade Agreement and make it harder for Mexican workers in the United States to send money home is expected to hurt Mexico’s economy.