Investors poured $20 billion into U.S. equity funds on Wednesday after President-elect Donald Trump was declared the winner of the presidential election, according to Bank of America.
The bank’s strategists, led by Michael Hartnett, reported that it was the biggest daily stock inflow since June, and the $2.9 billion that flooded into financials was the highest on record.
The note said the biggest picture is that “Trump won big, as US voters cared more about inflation, inequality…immigration than low unemployment,” and the Republicans’ “big sweep” equates to “big policies,” with the potential for $8 trillion in tax cuts, $3 trillion in tariff revenues and $1 trillion in spending cuts.
AFTER TRUMP VICTORY, STEVE MADDEN ANNOUNCES PLANS TO MOVE PRODUCTION OUT OF CHINA
Trump’s victory over Vice President Kamala Harris was decisive, with the president-elect winning both the Electoral College and the popular vote. The GOP also won control of the Senate and is within striking distance of maintaining a majority in the House, but control of the lower chamber was still up in the air Friday as key races remained too close to call.
The Dow Jones Industrial Average, S&P 500 and Nasdaq all hit fresh records after Trump’s win on Wednesday.
SEC COMMISSIONER BACKS TRUMP’S PLAN TO END CRYPTO CRACKDOWN
Dow financials, including Goldman Sachs and JPMorgan, helped drive the gains.
CLICK HERE TO READ MORE ON FOX BUSINESS
Even before Trump appeared to emerge as the winner, stock futures were steadily climbing, building on a rally Tuesday in which all three of the major market averages rose over 1% as all the major sectors in the S&P 500 locked in gains.
FOX Business’ Suzanne O’Halloran and FOX News’ Elizabeth Elkin contributed to this report.
