Stocks open flat for trading after Trump win
Axel Schmidt/Reuters
The Dow Jones Industrial Average opened slightly higher on Wednesday following a chaotic night in markets that ended with a surprise victory for Donald Trump in the US presidential election.
Here are some of the sectors making notable moves:
- Drug stocks are soaring. Democratic presidential candidate Hillary Clinton had outlined plans to to curb drug price increases. The iShares Nasdaq Biotech Exchange Traded Fund (ETF), which tracks biotech stocks, jumped 7%.
- Private-prison stocks soared, and Corrections Corporation of America gained as much as 35%. President Barack Obama and the Department of Justice announced in August that the federal government would stop using private facilities.
- Gun stocks plummeted, with Smith & Wesson down by as much as 16%. Trump's victory could fade some demand for stocks since there may be less panic about tougher gun laws.
On Tuesday, both Nasdaq and S&P 500 futures hit a limit-down, or the maximum amount by which they're permitted to fall before trading restraints kick in.
The major indexes closed higher in regular trading, adding to massive gains Monday on news that the Federal Bureau of Investigation concluded its investigation into additional emails Hillary Clinton sent from a private server while she was secretary of state.
A victory by Hillary Clinton was considered more positive for financial markets, at least initially, given investors' familiarity with her political career, and the sense of continuity she would likely provide.
And on Tuesday night, futures clearly tracked the odds: surging when Clinton regains the lead in key states like Florida, and slumping when she appears to be losing ground.
Trump, however, is considered more unpredictable and uncertain. Several strategists forecast an initial stock-market decline by as much as 10%, although some say this would be short-lived.
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