The Dow Jones Industrial Average had jumped 1,508 points, or about 3.6 percent, when markets closed, reaching a record high. It also was the first time it has jumped more than 1,000 points in a single day since November 2022.
The S&P 500 also gained 2.5 percent, and the Nasdaq climbed nearly 3 percent.
While big business has expressed concern with some of Trump’s plan, like his pitch to impose blanket tariffs on U.S. imports, Wall Street is anticipating tax cuts and deregulation during a second Trump presidency.
"A lot of our clients feel burdened by the Biden regulatory agenda, and Trump's first term saw very meaningful regulatory reform," Will Moschella, co-chair of the government relations department at the legal and lobbying giant Brownstein Hyatt Farber Schreck.
During his first term, the corporate tax rate was slashed to 21 percent in Trump's signature 2017 tax reform bill. He floated further rate cuts in June during a Business Roundtable event with some of the country’s most powerful executives.
The Senate has also flipped to Republican control, making it more likely that Trump will be able to implement his vision in 2025, when many of the existing provisions are set to expire.
“Winning the Senate could have significant implications for parts of the Trump agenda, especially extending expiring tax cuts, because Senate Republicans could use the reconciliation process to circumvent the Senate’s filibuster. But that’s only relevant if Republicans keep the House,” said Brian Gardner, chief Washington policy strategist at investment bank Stifel.
Several House races have yet to be called, and a majority has not been determined as of market close. Experts say it could take several days to determine which party will control the House.
The definitive early call in the presidential race was also a relief for investors, who waited days in 2020 for the race to be called.
“The fact that we know the outcome of the race will be welcome by investors since the country will not have to endure a repeat of the 2020 process. We expect the equity markets will see a Trump win as pro-economic growth and will rally on the news,” Gardner said.