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‘Trump Trade’: Election news leads to biggest 1-day stock market gain in 2 years

Brendan Gutenschwager/Anadolu via Getty Images

(NEW YORK) — The “Trump Trade” was in overdrive Wednesday, making it one for the history books on Wall Street with record finishes for all three major stock indices.

The Dow Jones Industrial Average rocketed 3.6%, its biggest one day jump since November 2022. The S&P 500 shot up 2.5% while the Nasdaq climbed nearly 3%.

The biggest winners were companies and sectors that investors are betting will benefit from President-elect Trump’s policies.

Bank stocks, including JP Morgan Chase (JPM), Wells Fargo (WFC), and Bank of America (BAC) rallied on the promise of lower taxes and less regulation. The small-cap Russell 2000 Index (RUT), which includes some regional banks, soared nearly 6%.

It was the biggest surge for the U.S. dollar since 2020, and Carl Icahn, the activist investor and billionaire, said it will lead to less regulation and more mergers and acquisition.

Elon Musk was perhaps the day’s biggest winner. Shares of his Tesla Corporation (TSLA) rocketed nearly 15%. The world’s wealthiest person has been a staunch Trump proponent, donating more than $130 million toward Trump’s election efforts. In his victory speech, the president-elect referred to Musk as a “super genius” and has promised him a role in his administration.

“The biggest positive from a Trump win would be for Tesla and Musk,” wrote Dan Ives, Senior Equity Research Analyst at Wedbush. “We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled. However, for Tesla we see this as a huge positive. Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players from flooding the US market,” Ives wrote in a research note.

The cryptocurrency market also cheered Trump’s return to the White House. Bitcoin (BTCUSD) notched a record close, climbing above $75,000. Trump has said he wants the U.S. to be the “crypto capital of the planet” and plans to create a “strategic reserve of bitcoin.”

In September, he even launched his own crypto platform, World Liberty Financial, a new venture with family members to trade cryptocurrencies.

Donald Trump saw his personal wealth balloon during Wednesday’s stock market rally, at least on paper. Shares of his Trump Media and Technology Group (DJT), the parent company of his social media platform Truth Social, soared more than 30% at the market’s open but pulled back considerably to finish just 6% higher. Still, that gave the company a market cap of about $7.2 billion, with Trump’s majority stake worth about $4.1 billion.

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National

What a 2nd Trump term may look like for health care issues including ACA, abortion

Chip Somodevilla/Getty Images

(NEW YORK) — Former President Donald Trump is set to return to the White House after winning Tuesday night’s election.

As of Wednesday morning, Trump surpassed the 270 electoral votes need to secure the presidency, and that could mean major changes to the health care landscape.

During his campaign, Trump vowed to make the Affordable Care Act “better” and to protect “women.” He also suggested that Robert F. Kennedy Jr. would shape the public health agenda of his administration.

This is what a second Trump term would mean for health care policies including health insurance and reproductive rights.

Future of the ACA and Medicare

Trump has been inconsistent on what his plans are regarding the Affordable Care Act (ACA), the landmark law signed in 2010 by then-President Barack Obama.

During his first term, Trump tried several times to repeal the ACA but was unsuccessful. In November 2023, he also vowed to replace it in a post on his social media planform, Truth Social.

Since then, he has shifted course. In March, Trump said is “not running to terminate” the ACA but said he wanted to make it “better” and “less expensive,” in a post on Truth Social.

During the September presidential debate, he said he had “concepts of a plan” and said it would be “better health care than Obamacare,” but offered few details.

There could also be changes to Medicare, a federal health insurance program for people aged 65 or older and younger people with disabilities.

Trump has promoted Medicare Advantage, which is run by commercial insurers. What’s more, Project 2025 — a plan of conservative policy proposals proposed by the Heritage Foundation and not endorsed by Trump — has proposed Medicare Advantage be the default option for Medicare coverage.

Experts have said this could privatize the program and prevent people from receiving care from doctors and hospitals that don’t accept Medicare Advantage.

Also at risk are those with pre-existing conditions. Under the ACA, insurers cannot charge more or deny coverage to someone or their child because of a pre-existing health condition. However, Vice President-elect JD Vance has suggested placing people with chronic conditions into separate risk pools, which could raise premiums for those with pre-existing conditions.

Kennedy vows to remove fluoride from drinking water, vaccine review

During a charity dinner last month in New York City, Trump pledged that Kennedy would “go wild on health.”

Kennedy, an environmental lawyer with no public health or medical background, has been vocal on certain health policies he would like to tackle including fluoride in drinking water and review of vaccines.

In an interview with NPR on Wednesday morning, Kennedy doubled down on his promise that the Trump administration will recommend that local governments remove fluoride from their water supplies.

He has claimed that fluoride in drinking water affects children’s neurological development and that other countries which have removed fluoride from their water supplies have not seen an increase in cavities.

The Centers for Disease Control and Prevention says fluoride prevents cavities and repairs damaged to teeth caused by bacteria in the mouth. Fluoride also replaces minerals lost from teeth due to acid breakdown, according to the agency.

Additionally, Kennedy told NPR he would work “immediately” to increase research into the safety of vaccines, though he insisted, “We’re not going to take vaccines away from anybody.”

“We are going to make sure that Americans have good information,” he said. “Right now, the science on vaccine safety, particularly, has huge deficits in it. We’re going to make sure those scientific studies are done, and that people can make informed choices about their vaccinations and their children’s vaccinations.”

Top U.S. Food and Drug Administration officials have said that FDA-approved vaccines are “high quality, effective, and safe.”

In an interview with NBC News, he also suggested firing many workers at the FDA’s nutrition department.

Uncertainty about the future of reproductive rights

Although Trump has taken credit for ending Roe v. Wade — which was overruled by the U.S. Supreme Court in 2022 — he was hesitant during his campaign to state his stance on abortion.

During the presidential debate in September, he said he believed in exceptions for rape, incest and to save the mother’s life but declined to say if he would veto a national ban.

However, in October, he wrote on the social platform X that he would not support a federal abortion ban, and said abortions laws are up to the will of the voters in individual states.

Trump told CBS News in August he would not use the 150-year-old Comstock Act to ban mail delivery of medication abortion pills, which drew rebuke from some conservatives and anti-abortion advocates.

In September, during a rally in Pennsylvania, he said he would be a “protector” of women and that they “wouldn’t be thinking about abortion” if he were elected. He doubled down on these claims last month during a rally in Wisconsin, with Trump saying he would “protect” women “whether the women like it or not.”

He has not offered specifics on what being a “protector” means in this capacity.

ABC News’ Will McDuffie contributed to this report.

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National

Harris says she’s full of ‘resolve,’ urges supporters to ‘accept the results of this election’ in concession speech

Kent Nishimura/Getty Images

(WASHINGTON) — Vice President Kamala Harris said her heart is “full of resolve” after losing the presidential election to former President Donald Trump.

“My heart is full today — full of gratitude for the trust you have placed in me, full of love for our country, and full of resolve,” Harris said Wednesday at her alma mater, Howard University, in Washington, D.C.

“The outcome of this election is not what we wanted, not what we fought for, not what we voted for. But … the light of America’s promise will always burn bright as long as we never give up,” Harris said.

“We must accept the results of this election,” she said.

Harris’ defeat came as Trump won the swing states of Pennsylvania, Georgia and Wisconsin overnight. Trump won another swing state, Michigan, on Wednesday.

Trump’s victory underscores just how deep voters’ frustrations were surrounding inflation and immigration, Republicans’ two top issues this election cycle as polls consistently showed Americans’ unhappiness with how President Joe Biden handled them. Trump’s return to the White House also suggests that Democrats were not motivated enough by the prospect of electing the first female president and that its base’s fury over the Supreme Court’s revocation of constitutional abortion protections has waned since 2022.

Harris had an extremely hurried campaign, which began this summer when Biden dropped out of the race and endorsed his vice president.

Biden, who plans to address the nation on Thursday, spoke with Harris on the phone Wednesday to congratulate her on “her historic campaign,” the White House said.

Trump and Harris also spoke by phone on Wednesday, according to the Trump campaign. Harris told Trump she will work with Biden to ensure a peaceful transfer of power, unlike the transition in 2020, according to an email Harris campaign chair Jen O’Malley Dillon sent to campaign staff.

This is a developing story. Please check back for updates.

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National

Southern California fire moving ‘dangerously fast’ with 0% containment

Etienne Laurent/AFP via Getty Images

(MALIBU, CA) — A fast-moving brush fire exploded over 14,000 acres on Wednesday, prompting evacuations amid a red flag warning from the National Weather Service.

Ventura County remains under an “extremely critical” wildfire warning while firefighters struggle to gain an edge on the Mountain Fire, which is currently 0% contained.

At least two individuals have been transferred to hospitals for smoke inhalation, Ventura County Fire Chief Justin Gardner said during a press briefing Wednesday evening.

An accurate number regarding damage is expected on Thursday, as the area remains too dangerous to fully assess the damage, according to Gardner.

At least 14,000 people were told to evacuate, Ventura County Sheriff Jim Fryhoff.

The Mountain Fire is one of two wind-driven fires that broke out in Southern California, leading the NWS to issue a rare red flag warning for Los Angeles and Ventura Counties alerting of an “extreme fire risk” from Malibu into the San Gabriel Mountains, north of Los Angeles, where winds could gust near 100 mph.

“A very strong, widespread, and long-duration Santa Ana wind event will bring widespread extremely critical fire weather conditions to many areas of Los Angeles and Ventura counties Wednesday into Thursday,” according to the NWS warning.

As of Wednesday, at least two wind-driven fires have already broken out in Southern California.

Mountain Fire

According to local fire officials, the rapidly burning Mountain Fire in Ventura County has spread over 14,000 acres, prompting evacuation orders, threatening structures, and leaving several people injured.

“We do know we’ve lost homes, we do know we’ve had homes damaged, and we know of injuries but I do not have any counts,” Public Information Officer Scott Dettorre told ABC News.

“The injuries we do know of are civilian, we do not have any firefighter injuries at this time,” Dettorre said.

Due to extreme wind conditions, fixed-wing aircraft are unable to assist in firefighting efforts, according to the Ventura Fire Department, which said ground crews, helicopters and mutual aid resources are “actively working to protect lives and property.”

Evacuation orders are in effect for Walnut Ave to Balcom Canyon Road and North Highway 118 to the ridgeline and west to Saticoy County Club in Ventura County, according to CAL Fire.

Broad Fire

A second wildfire erupted in Los Angeles County’s Malibu area Wednesday — named the Broad Fire — and has burned at least 50 acres southwest of South Malibu Canyon Road and the Pacific Coast Highway (PCH) in Malibu, according to CAL Fire.

Local fire officials have warned residents to prepare for potential evacuations and the PCH has been closed in both directions between Webb Way and Corral Canyon.

Santa Ana wind conditions

Named after Southern California’s Santa Ana Canyon, the region’s Santa Ana winds bring blustery, dry and warm wind that blows out of the desert, drying out vegetation and increasing wildfire danger.

The long-duration Santa Ana wind event will reach its peak on Wednesday, becoming moderate on Thursday, then tailing off to light offshore winds on Friday.

Northeast winds moving 20 to 40 mph with gusts up to 60 mph are expected across the canyons and passes of Southern California through Wednesday, with higher winds in the more wind-prone areas.

Another surge of wind is expected to peak late Wednesday night through Thursday morning with widespread northeast winds of 20 to 30 mph with gusts to 50 mph before weakening considerably by Thursday afternoon.

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National

Southern California under ‘extreme fire’ warnings as dry, windy conditions spread 2 wildfires

Etienne Laurent/AFP via Getty Images

(MALIBU, Calif.) — Several Southern California counties are under “extremely critical” wildfire warnings as warm, dry temperatures and strong winds create volatile fire conditions.

On Wednesday, the National Weather Service issued a rare red flag warning for Los Angeles and Ventura Counties alerting of an “extreme fire risk” from Malibu into the San Gabriel Mountains, north of Los Angeles, where winds could gust near 100 mph.

“A very strong, widespread, and long-duration Santa Ana wind event will bring widespread extremely critical fire weather conditions to many areas of Los Angeles and Ventura counties Wednesday into Thursday,” according to the NWS warning.

Named after Southern California’s Santa Ana Canyon, the region’s Santa Ana winds bring blustery, dry and warm wind that blows out of the desert, drying out vegetation and increasing wildfire danger.

As of Wednesday, at least two wind-driven fires have already broken out in Southern California.

Mountain Fire

The fast-moving Mountain Fire in Ventura County has spread over 1,000 acres, prompting evacuation orders, threatening structures and leaving several people injured, according to local fire officials.

Due to extreme wind conditions, fixed-wing aircraft are unable to assist in firefighting efforts, according to the Ventura Fire Department, which said ground crews, helicopters and mutual aid resources are “actively working to protect lives and property.”

Evacuation orders are in effect for Walnut Ave to Balcom Canyon Road and North Highway 118 to the ridgeline and west to Saticoy County Club in Ventura County, according to CAL Fire.

Broad Fire

A second wildfire erupted in Los Angeles County’s Malibu area Wednesday — named the Broad Fire — and has burned at least 50 acres southwest of South Malibu Canyon Road and the Pacific Coast Highway (PCH) in Malibu, according to CAL Fire.

Local fire officials have warned residents to prepare for potential evacuations and the PCH has been closed in both directions between Webb Way and Corral Canyon.

Santa Ana wind conditions

The long-duration Santa Ana wind event will reach its peak on Wednesday, becoming moderate on Thursday, then tailing off to light offshore winds on Friday.

Northeast winds moving 20 to 40 mph with gusts up to 60 mph are expected across the canyons and passes of Southern California through Wednesday, with higher winds in the more wind-prone areas.

Another surge of wind is expected to peak late Wednesday night through Thursday morning with widespread northeast winds of 20 to 30 mph with gusts to 50 mph before weakening considerably by Thursday afternoon.

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Entertainment

Bill Burr drops some serious political tea in promo for first post-election ‘Saturday Night Live’

NBCUniversal

Bill Burr will host Saturday Night Live this weekend, and while it is his second time hosting, it’s the first show after the 2024 election. 

To that end, the stand-up superstar and Old Dads actor/director spilled a little political tea with cast member Marcello Hernández — or, at least he tried to — during a new promo video.

The sketch was obviously shot before the election results were in, so to cover for that, every time the pair mentioned who won the election in the past tense, a custodian drowns them out with a vacuum cleaner. 

Further, Burr also let slip, “I was randomly in a steam room with Giuliani,” referring to the former New York City Mayor-turned adviser to former President — and now president-elect Trump. “He told me who actually killed Epstein. He said it was — ” but again, the vacuum drones on. 

For his part, a shocked Hernández offered whom his Pentagon-connected cousin reportedly floated as a suspect. However, once again, the name is protected by the noise.

The pair also started talking about drugs Burr could use to take the edge off his nervousness, but this time Saturday Night Live‘s house band saxophonist Lenny Pickett lets fly, and we can’t hear what they’re saying.

The musical guest this will be Mk.gee, making his first SNL appearance.

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Politics

‘Deeply troubling’: Gun-violence prevention groups react to Trump victory

Jim Watson/AFP via Getty Images

(WASHINGTON, D.C) — Some gun violence prevention groups said Wednesday that they plan to double down in their fight for stronger firearm-control laws in the wake of former President Donald Trump recapturing the White House and promising to roll back President Joe Biden’s efforts to curb the national plague.

During his victorious campaign, Trump and his running mate, Sen. JD Vance, voiced opposition to most of Biden’s executive orders to combat the scourge that the Johns Hopkins Center for Gun Violence Solutions found to be the leading cause of death in the United States for adolescents under the age of 19 for three straight years.

“The election of Donald Trump is deeply troubling for our safety and freedom from gun violence,” Kris Brown, president of the Brady Campaign to Prevent Gun Violence, said in a statement Wednesday. “And that’s why we are doubling down on our work and fighting harder than ever.”

Gun violence was a big issue during the campaign. In an ABC News/Washington Post/Ipsos poll released in August, gun violence was ranked eighth in importance among voters after the economy, inflation, health care, protecting democracy, crime and safety, immigration and the Supreme Court.

In preliminary national exit polls analyzed by ABC News, voters said they trusted Trump over Vice President Kamala Harris, 50% to 48%, in handling the issue of crime and safety.

In his campaign, Trump often railed against what he described as a “surge” in migrant crime, including several high-profile homicides allegedly committed by undocumented immigrants. A 2020 study in the Proceedings of the National Academy of Sciences found U.S.-born citizens are over 2 times more likely than migrants to be arrested for violent crimes.

Brown said it won’t be the first pro-gun rights administration that has occupied the White House, adding that Trump’s previous four years in the Oval Office were marked by a “deadly period for Americans.” Among the mass shootings that occurred during Trump’s first term was the 2017 massacre at the Route 91 Harvest Festival music concert in Las Vegas that left 58 people dead and more than 850 people wounded; the 2018 mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, that killed 17 students and staff; and the 2019 shooting at a Walmart in El Paso, Texas, that claimed 23 lives and injured nearly two dozen other people.

“So even though we won’t have a friend in the White House, Brady isn’t giving up an inch,” Brown said of her organization named after White House press secretary James “Jim” Brady, who was shot and permanently disabled in the 1981 assassination attempt on then-President Ronald Reagan and later died in 2014 as a result of his wounds.

Brown added, “The movement to prevent gun violence has always been larger than one office, and we’ll continue to work with activists, survivors, community leaders and elected officials in states across the country to fight for progress that makes the whole country safer from gun violence.”

Trump and Vance, who have said they oppose a national ban on assault weapons, were endorsed by the National Rifle Association (NRA).

In February, Trump told NRA members at a forum in Harrisburg, Pennsylvania, “No one will lay a finger on your firearms” during his second term in office.

“During my four years, nothing happened and there was a lot of pressure on me having to do with guns,” Trump said at the time. “We did nothing, we didn’t yield. And once you yield a little bit that’s just the beginning, that’s [when] the avalanche begins.”

In May, Trump spoke at the NRA convention in Dallas and outlined some of the actions he’ll take in his second term.

“In my second term, we will roll back every Biden attack on the Second Amendment — the attacks are fast and furious — starting the minute that Crooked Joe shuffles his way out of the White House,” Trump said in the speech.

Trump also vowed during the speech to fire Steven Dettelbach, the director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). House Republicans have also said they want to abolish or drastically cut funding for the ATF.

“At noon on Inauguration Day, we will sack the anti-gun fanatic Steve Dettelbach,” Trump told NRA conventioneers. “Have you ever heard of him? He’s a disaster.”

Gun control advocates said they expect Trump to try to water down the Bipartisan Safer Communities Act (BSCA), the first major gun safety law enacted in 30 years that Biden signed in June 2022, about a month after a teenage gunman killed 19 students and two teachers at Robb Elementary School in Uvalde, Texas. The BSCA enhances background checks for gun buyers under 21, closes the so-called “boyfriend loophole” to prevent people convicted of domestic abuse from purchasing guns, and allocates $750 million to help states implement “red flag laws” to remove firearms from people deemed to be dangerous to themselves and others.

Advocates also expect Trump to abolish the first White House Office of Gun Violence Prevention established under the Biden administration and overseen by Harris.

Angela Ferrell-Zabala, executive director of Moms Demand Action released a statement on social media Wednesday, saying her gun violence prevention group also plans to continue to fight for laws that protect Americans from gun violence.

“If this work has taught me anything, it’s that no matter what, we always can and will secure victories to protect our communities from gun violence. This obstacle is no different. Today, we are crushed by this result,” Ferrell-Zabala said of Trump’s victory. “Tomorrow, we’re going to continue to organize like our lives depend on it — because they do.”

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Entertainment

Tom Hanks says fans constantly confuse him for Michael Keaton

ABC

Tom Hanks isn’t Batman — but apparently fans think he is.

The Oscar winner appeared on the Happy Sad Confused podcast, and revealed that despite being one of the most famous actors in Hollywood, fans confuse him for Michael Keaton “all the time.” 

“Yeah, me and him are, you know, some form of odd doppelgänger back from a long time ago,” he explains. “They don’t say ‘Beetlejuice Beetlejuice‘ to me exactly. But a lot of time, ‘Hey, were you in that?’ You know, I get that.”

The two men do share a similar comedy background, and they came up in the business around the same time. In fact, Keaton revealed back in 2012 that he was up for a starring role in Splash, the 1984 Ron Howard hit that helped catapult Hanks to movie stardom. However, Keaton turned the role down so that he wouldn’t get typecast in comedies after the success of 1983’s Mr. Mom.

Some time ago, there were rumors Hanks was offered the role of the Caped Crusader before Keaton donned the cape and cowl in 1989’s Tim Burton blockbuster Batman, which he recently reprised in The Flash

However, Hanks poured cold water on that rumor on the Graham Norton Show, joking the very idea was “comical.” Hanks clarified he was “never” offered the role, adding with a laugh, “Can you imagine me in that suit?”

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National

Special counsel Jack Smith expected to wind down Trump prosecutions: Sources

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(WASHINGTON) — Special counsel Jack Smith is in active talks with senior leadership at the Justice Department evaluating ways he can end his prosecutions of President-elect Donald Trump, sources familiar with the matter told ABC News.

The decision is based on longstanding Department of Justice policy that a sitting president cannot face criminal prosecution while in office, sources said.

It is unclear as of today how Smith’s prosecutors will approach dismissing both the federal election subversion case in Washington, D.C., and their ongoing appeal of Judge Aileen Cannon’s dismissal of the classified documents case.

Trump has vowed to fire Smith “within two seconds.”

“We got immunity at the Supreme Court. It’s so easy. I would fire him within two seconds. He’ll be one of the first things addressed,” Trump said on a call into the “Hugh Hewitt Show” on Oct. 24.

But due to Justice Department policy of not prosecuting a president, a firing is unneeded.

Smith was appointed to his position by Attorney General Merrick Garland in November 2022 to investigate Trump and his allies’ efforts to overturn the 2020 election as well as Trump’s alleged unlawful possession of highly classified documents he took from his time in the White House.

On June 8, 2023, Smith indicted Trump on charges he unlawfully retained classified documents and obstructed the government’s efforts to retrieve them. Trump pleaded not guilty to the charges in a federal court in Florida.

On Aug. 1, 2023, Trump was indicted on four felony counts related to his efforts to overturn the results of the 2020 election. Trump also pleaded not guilty in federal court to those charges.

Both cases were thrown into disarray by the Supreme Court’s decision earlier this summer giving presidents partial immunity against prosecution.

The Jan. 6 case was sent back to a lower court, while Cannon, a Trump nominee, dismissed the classified documents case, ruling Smith’s appointment as special counsel was unconstitutional because he was not appointed by the president or confirmed by Congress.

ABC News’ Ivan Pereira contributed to this report.

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