When Donald Trump won the 2024 election, there was a significant rise in the US stock market.

The Dow Jones Industrial Average rose 1,438 points, or 3.4%, at one point, while the Nasdaq composite was 2.8% higher.

It’s not unusual to see a positive change in the markets after the election is over, but this was an unusual increase. Stephanie Yates, professor of finance at UAB, says it comes down to two factors.

“First of all, the markets don’t like uncertainty. When we had an answer to the election question quite quickly and quite decisively, that was a very good thing for the markets.” Yates said.

This is what typically causes a post-election surge, regardless of the winner. However, it becomes more specific with a Donald Trump victory.

Yates continued: “The second part of it was based on which candidate prevailed in the election, so market participants started thinking about what this candidate has promised, what we might see in the future and what impact that will have on businesses have, what impact that will have.” markets.”

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When it comes to banking and sectors that saw increases, Yates said Wednesday that this is mainly due to promises of reduced regulation, and it is difficult to say whether the market will continue to follow this trend until President Trump takes office and these promises are fulfilled fulfilled.

Birmingham residents from both sides of the political spectrum say they aren’t paying too much attention to the sudden changes in the stock market.

Jacob Speights said: “It was probably a little more than I expected. I’m sure everything will calm down. I don’t put much stock in it. I don’t look at these things that have happened in the market in the last few hours or in terms of interest rates that this will happen in the coming months.”

Mission Smith said: “It’s too early to tell because someone can say he’s going to do so much before he comes into power but then when he comes into power that changes so they just raise everyone’s hopes , like: oh, I’m going to do all this.” versus when they get in there, they don’t do any of it.”

It’s also important to note that not every stock rose. After the election, there were winners and losers in the stock market, even though the overall trend is up.