NEW YORK (AP) — US stock market, Elon Musk’s Tesla’sbanks and bitcoin They were all bullish on Wednesday as investors placed bets on what would happen Donald Trump’s return to the White House What will it mean for the economy and the world? World. The market’s losers include: the renewable energy sector and anyone else potentially concerned higher inflation.

The S&P 500 had its best day in nearly two years, rising 2.5%. The Dow Jones Industrial Average rose 1,508 points, or 3.6%, while the Nasdaq composite rose 3%. All three indices exceeded the records they broke in recent weeks.

The US stock market has historically been in an upward trend Whichever party wins Democrats have had larger average gains in the White House since 1945. But Republican control could mean big changes in industries that win and lose under the surface, and investors are adding to bets already established. Higher tariffs, lower tax rates and lighter regulations Here’s what Trump’s good deeds will mean.

“Markets are trying to understand what will happen next, but for now the market is pricing in the outlook for higher growth and higher inflation,” said Peter Esho of Esho Capital.

Of course, how much change Trump creates in his second term will likely depend on whether his fellow Republicans gain control of Congress, which is as follows: still to be determined. This could leave room for reversals on some of Wednesday’s big spikes.

Still, the market is split between pretty clear winners and losers in the wake of Trump’s dramatic victory. Between them:

Bank stocks UP

Bank stocks have led the market higher, partly on hopes that a stronger economy will mean more customers taking out loans and paying them back with interest. They also gathered in hopes of easing regulations from the Republican White House. JPMorgan Chase gained 11.5%, and financial stocks had by far the biggest gain among the 11 sectors that make up the S&P 500. Capital One Financial rose 15% and Discover Financial rose 20.2%, making for some of the market’s biggest gains despite speculation. The merger will more easily receive federal approval under the Trump administration.

Crypto, UP

Trump vows to make country “the greatest country in the world” crypto capital planet” and create a “strategic reserve” for Bitcoin. Bitcoin price has risen above its all-time high of $76,480 and was recently just below $76,100, according to CoinDesk. Companies in the crypto industry also jumped, including trading platform Coinbase’s 31.1% jump.

Tesla, UP

Musk has become a close ally of Trump, promoting the former president’s candidacy. While Trump could hurt the electric vehicle industry overall by limiting government subsidies, analysts say Tesla may have some advantage being already such a big player in the industry. Tesla rose 14.8%, while rival Rivian Automotive fell 8.3%.

Trump Media and Technology Group, UP

The company behind Trump’s Truth Social The platform rose 5.9% after rising nearly 35% earlier in the day. He regularly trades based on Trump’s popularity rather than profit expectations. His rise came even after he was filed unaudited financial documents Regulators said Tuesday the company lost $19.2 million in the latest quarter, with sales weakening from a year earlier.

Private prison operators, UP

Washington, under Trump’s leadership, could push for stricter enforcement of the country’s borders; This could mean more business for companies working with U.S. Immigration and Customs Enforcement (ICE). GEO Group, which operates ICE machining centers, increased by 42.1%.

Shares of small companies, UP

Trump’s America First policies could help companies that focus on U.S. customers rather than large multinationals that could be hurt by increased tariffs and protectionism. The Russell 2000 index, which includes smaller stocks that are seen as more domestically focused than larger stocks in the S&P 500, rose 5.8%. That was more than double the S&P 500’s gain.

Treasury bill prices, DOWN

Investors think Trump’s policies will potentially lead to stronger economic growth, which will help push Treasury prices down and yields up. Tax cuts under the Trump administration could further increase the U.S. government’s deficit, which could increase borrowing needs and push yields even higher. The yield on the 10-year Treasury note rose to 4.43% from 4.29% late Tuesday; This is a significant move for the bond market. It is up significantly from August, when it was below 4%.

Inflation concerns, UP

Investors also think Trump’s policies, especially tariffs that could add costs to U.S. households’ bills, could contribute to future inflation.

“Trump continues to publicly tell people that he will increase tariffs on all trading partners, not just China,” said Andrzej Skiba, head of BlueBay U.S. Fixed Income at RBC Global Asset Management. “We are talking about 10% tariffs on all global partners. This is very important because it can contribute 1% to inflation. “If you add 1 percent to next year’s inflation figures, we have to say goodbye to interest rate cuts,” he said.

A decline in immigrants could also mean a shortage of available workers for employers; This could force companies to raise workers’ wages faster and put further upward pressure on inflation.

Expectations regarding interest rate cuts are MIXED

Much of Wall Street’s record run this year was built on expectations. Interest rate cut coming from the Central Banknow inflation is visible We are returning to the 2 percent target. Easier interest rates would help stimulate the economy, but could also further fuel inflation.

According to CME Group data, the Fed will announce its final decision on interest rates on Thursday. According to CME Group’s data, an interest rate cut is still expected. But traders are already lowering their bets on how much the Fed will cut by the middle of next year.

Foreign currencies are DOWN against the dollar

Trump’s pledge to sharply raise tariffs on imports from China, Mexico and other countries has raised concerns about trade wars and disruptions to the global economy. The value of the US dollar against some major currencies rose by 1.6%, meaning other currencies fell.

The euro fell 1.5% and the South Korean won fell 1.2%. mexican pesoThe currency, which has been falling against the dollar since the summer in part due to concerns about Trump’s reelection prospects, fell earlier in the day but later recouped its losses.

Renewable energy stocks, DOWN

Trump is a fan of fossil fuels, which encourage oil and gas production. His win caused solar stocks to fall sharply, including First Solar’s 10.1% decline and Enphase Energy’s 16.8% decline.

The only stock with a bigger loss in the S&P 500 was Super Micro Computer, which said its sales in the last quarter might come in below its previous estimates. Its stock lost 18.1% of its value.

Overall, the S&P 500 rose 146.28 points to 5,929.04 points. Dow index increased by 1,508.05 points to 43,729.93 points, and Nasdaq index increased by 544.29 points to 18,983.47 points.

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AP Writers Zimo Zhong, Elaine Kurtenbach, Kirstin Grieshaber and Kelvin Chan contributed to this report.

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