STOCKS are moving solidly higher in midday trading on Wall Street following Donald Trump’s upset victory over Hillary Clinton in the US presidential election.
The gains on Wednesday were led by drugmakers, which would have faced the likelihood of price controls under Mrs Clinton.
Pfizer jumped soared 8 percent, the biggest gain in the Dow Jones industrial average.
Hospital operators sank. Trump has promised to repeal the Affordable Care Act. HCA Holdings plunged 14 percent.
The Dow average rose 143 points, or 0.8 percent, to 18,475. The Standard & Poor’s 500 index gained 15 points, or 0.7 percent, to 2,155. The Nasdaq composite climbed 34 points, or 0.7 percent, to 5,227.
Bond prices fell, sending yields higher. The yield on the 10-year Treasury note rose to 1.98 percent.
Stock prices displayed on an information screen at the Australian Stock Exchange in Sydney after the US election result. Picture: AAPSource:AAP
In early morning trade, health care sector companies led the gainers, surging 2.8 per cent. Investors had feared Ms Clinton would implement curbs on drug pricing increases that could hurt drugmakers and biotechnology companies. Pfizer jumped 8.2 per cent, the biggest gain in the Dow Jones industrial average.
Though uncertainty remains over Mr Trump’s trade, immigration and geopolitical policies and what his victory means for the future of globalisation, investors appeared somewhat calmed by his victory speech, in which he praised Ms Clinton and urged Americans to “come together as one united people” after a divisive campaign.
A man walks past a display of the Hang Seng index at Hong Kong Stock Exchange. Picture: APSource:AP
“While Trump slightly soothed some concerns in his victory speech, uncertainty remains over what kind of a US he plans to lead,” said Craig Erlam, senior market analyst at OANDA.
In Europe, Germany’s DAX was up 0.5 per cent, while France’s CAC-40 gained 0.5 per cent. The FTSE 100 index of leading British shares was 0.7 per cent higher. As Mr Trump gained the lead in the electoral vote count, share prices tumbled in Asia, which were open during the election results.
By the time Mr Trump was confirmed the winner and made his speech, financial markets had steadied. The dollar also recouped some ground, while assets that many investors search out at times of uncertainty, such as gold, came off earlier highs.
