Investing.com – US Stock Futures Climb

US stock futures climb after Wall Street reached record highs following Donald Trump's election victory. Kamala Harris concedes and agrees to a peaceful transfer of power. The Federal Reserve prepares for a 25-basis point interest rate cut this Thursday.

1. Futures Higher

US stock futures were up on Thursday as investors evaluated the presidential election results. By 03:47 ET (08:47 GMT), the Dow futures added 72 points (0.2%), S&P 500 futures climbed 7 points (0.1%), and Nasdaq 100 futures increased by 33 points (0.2%). The main averages surged after Republican candidate Donald Trump was elected the 47th president, marking his return to the White House after losing in 2020.

“Trump trades” saw a rise, with the US dollar experiencing its largest spike in two years, and US Treasury yields increased. Bitcoin reached an all-time peak of $76,134 amid optimism for Trump's support of cryptocurrency.

2. Harris Concedes to Trump

Kamala Harris, Trump’s Democratic rival, formally conceded the race on Wednesday, encouraging supporters to continue the fight for democratic values. In her Washington speech, she emphasized accepting the election results and promised a peaceful transition. Harris's statements contrasted with Trump’s previous refusal to concede in 2020. Both candidates discussed unifying the country post-election.

3. Fed Decision Ahead

The Federal Reserve is set to announce its interest rate decision on Thursday after delaying due to the election. Investors expect a quarter-point cut to the current range of 4.75% to 5%. Following Trump's victory, market expectations shifted to just two additional cuts next year, moving rates to a band of 3.75% to 4%.

4. Chinese Exports Jump in October

China’s trade balance exceeded expectations in October, with exports growing 12.7% year-on-year, surpassing a 5% expectation. The trade surplus reached $95.27 billion, up from $81.71 billion in September.

5. Oil Dips

Oil prices dipped on Thursday as traders considered the implications of a Trump presidency. Brent crude slipped 0.3% to $74.69 a barrel, and WTI fell 0.5% to $71.33. Concerns were raised over potential supply restrictions from Iran and Venezuela, along with speculation about increased demand due to pro-business policies. Upcoming Chinese fiscal spending plans are also anticipated to stimulate economic growth.