The Dow Jones industrial index hit an an all-time high Wednesday, reversing a massive drop triggered by President-elect Donald TrumpDonald TrumpKinzinger says Trump 'winning' because so many Republicans 'have remained silent' Our remote warfare counterterrorism strategy is more risk than reward Far-right rally draws small crowd, large police presence at Capitol MORE’s improbable win.
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.
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.