Photo: The Canadian Press

A television screen on the floor of the New York Stock Exchange shows the results of the presidential election, Wednesday, Nov. 6, 2024. (AP Photo/Richard Drew)

The American stock market, that of Elon Musk adzebanks and bitcoin all skyrocket Wednesday as investors bet on what Donald Trump’s return to the White House will mean for the economy and world. Among the losers you see the market: solar companies and potentially anyone who is concerned higher inflation.

The S&P 500 rose 2% in midday trading and was on track to hit a peak the all-time high set last month. The Dow Jones Industrial Average was up 1,304 points, or 3.1 percent, at 11:30 a.m. ET, while the Nasdaq composite was 2.3 percent higher.

The US stock market has historically tended to rise regardless of which party wins White House, with Democrats posting higher average gains since 1945. But Republican control could mean big changes in the winners and losers below the surface, and investors are adding to bets built earlier on what higher tariffs, lower tax rates and lighter regulations that they will mean Trump’s favors.

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

Of course, how much change Trump will be able to effect will likely depend on whether his fellow Republicans win control of Congress, and that is yet to be determined. That could leave room for snaps back into some of the big knee moves on Wednesday.

However, the market is splitting into pretty clear winners and losers following Trump’s dramatic win. Among them:

BANKING STOCKS, up

Bank stocks led the market higher, in part on hopes that a stronger economy would mean more customers taking out loans and paying them back with interest. They also raised hopes for lighter regulation from a Republican White House that could spur more mergers and acquisitions where investment banks could earn fees. JPMorgan Chase rose 9.2 percent, and financial stocks in the S&P 500 were by far the biggest gainers among the index’s 11 sectors.

CRYPTO, up

Trump has pledged to make the country “the crypto capital of the planet” and create a “strategic reserve” of bitcoins. The price of bitcoin hit an all-time high of more than $75,000, according to Coindesk, and recently rose 6.5% to around $74,400. Companies in the crypto industry also rose, including the 22.7% jump of trading platform Coinbase.

TESLA, up

Musk has become a close ally of Trump, pushing to be the former president’s running mate. While Trump could end up hurting the EV industry overall by limiting government subsidies, analysts say Tesla could gain somewhat of an advantage by already being such a big player in the industry. Tesla rose 13.2 percent, while rival Rivian Automotive fell 9.9 percent.

TRUMP MEDIA & TECHNOLOGY GROUP, up

The company behind Trump’s Truth Social the platform rose 6.1% after previously rising nearly 35%. They regularly trade more on Trump’s popularity than profit prospects. His rise came even after he filed unaudited financial documents Regulators said late Tuesday that it lost $19.2 million in the latest quarter and that its sales were down from a year earlier.

PRIVATE PRISON OPERATORS, up

A Trump-led Washington could push for stricter enforcement of the nation’s borders, which could mean more business for companies that work with U.S. Immigration and Customs Enforcement, or ICE. GEO Group, which runs ICE processing centers, rose 35.5%.

SMALLER, GROWING COMPANY STOCKS

Trump’s America-First policies could help companies that focus on customers in the United States, rather than large multinationals that could be hurt by rising tariffs and protectionism. The Russell 2000 index of smaller stocks, which are seen as more domestically focused than the large-cap S&P 500, rose 4.5 percent. That was more than double the S&P 500’s gain.

TREASURY BONDS PRICES down

Investors see Trump’s policies as likely to lead to stronger economic growth, which helps lower Treasury prices and raise their yields. Tax cuts under Trump could further increase the US government’s deficit, which would increase its borrowing needs and force yields even higher. The 10-year Treasury yield rose to 4.45 percent from 4.29 percent late Tuesday, a major move for the bond market. That’s up substantially from August, when it was below 4%.

CARE INFLATION, up

Investors also see Trump’s policies as likely to increase future inflation, particularly tariffs, which can add costs to US household bills.

“Trump is openly telling people that he’s going to raise tariffs not just on China, but on every trading partner,” said Andrzej Skiba, head of BlueBay US Fixed Income at RBC Global Asset Management. “We are talking about 10% tariffs for all global partners. . This is a big problem because it could add 1% to inflation. If you add 1% to next year’s inflation numbers, we’d have to say goodbye to rate cuts.”

A drop in immigration could also push companies to raise workers’ wages faster, which in turn could put more upward pressure on inflation.

INTEREST RATE CUT EXPECTATIONS, confused

Much of Wall Street’s run to records this year has been built on expectations for future interest rate cuts by the Federal Reservenow that inflation seems to be returning to the 2% target.. Easier interest rates help stimulate the economy, but they can give inflation more fuel.

The Fed will announce its latest interest rate decision on Thursday, where expectations are still for a cut, according to CME Group data. But traders are already scaling back their forecasts for how much the Fed will cut by the middle of next year.

FOREIGN CURRENCIES, falling against the dollar

Trump has vowed to sharply raise tariffs on imports from China, Mexico and other countries, raising concerns about trade wars and disruption to the global economy. A measure of the U.S. dollar’s value against several major currencies rose 1.6 percent, while other currencies fell.

The euro sank by 1.5%, the South Korean won lost 1.2%, and the mexican peso slipped a bit more against the dollar.

RENEWABLE ENERGY STOCKS, declining

Trump is a fan of fossil fuels, encouraging the production of oil and natural gas. Its gain led to a sharp decline in solar stocks, including a 12.6% drop for First Solar and an 18.7% drop for Enphase Energy.

The only stock with a bigger loss in the S&P 500 was Super Micro Computer, which said its sales for the latest quarter may be below its previous forecast. Its stock fell 24.4%.