Stocks rose on Wednesday following Donald Trump’s victory in the 2024 presidential election.

The Dow rose more than 1,500 points, the first time it has gained more than 1,000 points in a single day since November 2022. The Nasdaq rose 3% to 18,983.47 and the S&P 500 rose 2.5 %, to 5,929.04, according to Associated. Presser..

Historically, the market rises the day after Election Day. But there were some clear winners on Wednesday, all indications of how investors think Trump’s policies will affect the economy.

All three major indexes hit record highs, with Tesla shares leading the pack. Ironically, Trump’s promised cuts to government subsidies for the electric vehicle industry will likely be a major blow to the sector as a whole, but investors are betting that Tesla will hold an advantage.

Bank stocks also rose as investors believed Trump’s policies would strengthen the economy, leading to consumers taking out more loans and paying more interest. However, bond yields are also rising, indicating that investors are betting on inflation ahead.

“With what would appear to be the certainty of continued Trump tax cuts, we will be injecting more money into the US economy, which would be inflationary,” said Bankrate senior economic analyst Mark Hamrick.

He added: “Tariffs, depending on how widely they are applied and at what level, would add to the price concerns because you’re basically adding a tax to items that are imported into the United States, and we rely entirely on global supply chains. .”

Deanna Dewberry, News10NBC: “What should I, as an individual consumer, do to prepare for the financial changes that may occur?”

Mark Hamrick, Bank Rate: “To save for retirement. saving for emergencies. payment of debts. And if we enter an environment where interest rates don’t fall as low as previously thought, that means the cost of borrowing, such as credit card debt, will either remain high, may or may not rise. . we’re going down as far as we’d hoped.”

There is more irony here. What might be great for your 401(k) might hurt when you make a trip to the grocery store. The Federal Reserve raised interest rates to slow borrowing, stem the flow of money into the economy, and slow inflation. Pumping money into the economy flies in the face of these efforts.

So while it might seem counterintuitive, too much growth may not be a winner for your wallet while the nation is still trying to get inflation under control.

In the short term, Hamrick says he thinks the economy will stay on track — healthy, good growth, low unemployment. But you should prepare for the possibility that inflation will heat up again — and that interest rates won’t fall as quickly as you might have hoped.

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