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Financial markets responded enthusiastically to Donald Trump’s election victory, with stock futures surging and Treasury yields climbing sharply. Traders rushed to capitalize on opportunities aligned with the president-elect’s economic agenda, anticipating new tariffs, tax cuts, and significant changes in energy and regulatory policies.

In premarket trading, futures for all three major indexes showed substantial gains. S&P 500 futures rose over 2 percent, while Dow Jones Industrial Average futures increased by nearly 3 percent. The Nasdaq Composite also saw a 1.3 percent uptick. Notably, the Russell 2000, an indicator of smaller, economically sensitive companies, experienced a remarkable rally of almost 6 percent, reflecting growing confidence in the domestic economy.

This market reaction echoed the surge witnessed following Trump’s unexpected triumph in 2016.

The bond market experienced a selloff, pushing the 10-year U.S. Treasury yield above 4.46 percent, up from Tuesday’s closing of 4.290 percent. This increase in bond yields, which move inversely to prices, typically signals investors’ expectations of accelerated economic growth.

The impact of Trump’s victory extended beyond U.S. markets. European stocks also saw gains, with indexes linked to German, French, and UK shares all climbing.

In Asia, market reactions were mixed. Japanese stocks soared, with the Nikkei 225 index rising 2.6 percent. However, mainland China’s CSI 300 dropped by half a percentage point, while Hong Kong’s Hang Seng Index fell 2.3 percent.