US presidential election: stock market winners and losers
From financial stocks to healthcare companies, various sectors are showing significant price movements as markets digest potential policy implications.
Market reaction to Donald Trump’s presidential election victory
US stock indices kicked off the day with huge gains of between 2%-3% as Donald Trump’s administration is seen as supporting business-friendly policies, particularly for domestic-focused companies which will likely be benefit from increased protectionism.
Small-cap stocks so far benefitted most from Trump’s "America First" policies which include improved domestic investment, domestic job additions, tax cuts and reduced regulations with the Russell 2000 gaining around 5% pre-market.
Main gainers amid Trump presidential election win
Trump Media & Technology is probably the biggest winner of the day and traded up over 38% in pre-market trading. This significant move reflects investor speculation about the company's prospects.
Traders using trading platforms are closely monitoring the volatile movements in media-related stocks and are assessing potential policy implications for the broader technology sector.
The price action suggests strong momentum, though traders should remain mindful of potential volatility.
Stocks like Phunware, GEO Group, Trilogy Metals, Qualys and CoreCivic trading up by over 20% on deregulation and US infrastructure investment hopes.
US stocks pre-market gainers and losers chart
Elon Musk, one of Trump’s main supporters, and his companies like Tesla, have also risen sharply in pre-market trading, by up to 13%. Traditional automakers Ford and General Motors have shown more modest gains of around 2%, though.
Electric vehicle manufacturer Rivian has declined 3%, reflecting concerns about potential changes to electic vehicle (EV) policies.
Clean energy companies like NextEra Energy, Centene and Vast Solar dropped between 6% and 38% in early trading as Donald Trump vowed to slow down the conversion to clean energy.
These divergent moves highlight the importance of sector-specific analysis when trading online.
Major banks lead market gains on policy expectations
Leading US financial institutions have seen significant premarket gains, with shares of JPMorgan Chase, Wells Fargo, Goldman Sachs and Riot Blockchain rising between 7% and 8%.
Bank of America, Morgan Stanley, and Citigroup have similarly posted strong advances, reflecting broader optimism about the financial sector's prospects under potential new policies.
The moves come as traders anticipate possible reforms to banking regulations and corporate tax structures that could boost profitability.
Healthcare sector opportunities emerge
Healthcare insurers focused on Medicare have posted strong gains, with UnitedHealth up 7% and Humana rising 9%.
The moves reflect expectations of potentially higher rates for private Medicare providers under new policies.
Traders using demo accounts are practicing strategies to capitalise on these sector movements.
Healthcare remains a key sector for investors to monitor as policy implications become clearer.
Market performance and benchmark comparisons
The S&P 500 Banks Index has outperformed the broader market year-to-date, rising approximately 26% compared to the S&P 500's 20% gain.
This outperformance reflects growing investor confidence in the banking sector's prospects under potential new policies.
Stock trading volumes have increased as market participants position themselves for potential policy shifts.
The strong performance has coincided with record highs in S&P 500 and Dow Jones futures, indicating broader market optimism.
How to trade sector-specific opportunities
- Research potential policy impacts across different sectors
- Choose whether you want to trade or invest
- Open an account with us
- Search for relevant markets in our platform
- Place your trades using appropriate risk management
Consider the broader economic context when evaluating sector-specific opportunities.
Monitor technical indicators and price action to identify potential entry and exit points.
Keep track of sector-specific news and announcements that could impact stock performance.
This analysis focuses on potential market movements rather than specific trading recommendations, with opportunities available through various instruments like spread betting and CFD trading.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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