Trump wins the election and benefits greatly! Dow Jones futures surged over 1,100 points, and Tesla soared over 12% before the market opened.

The official vote counting for the US presidential election is underway, with the Republican presidential candidate Trump leading the race. According to real-time data from Fox News, Trump has already secured 277 electoral votes, exceeding the 270 threshold needed to win, defeating Kamala Harris and securing the White House. Trump has also earlier delivered his victory speech. Trump trade surges As Trump crosses the victory threshold, investors have reacted positively. CNBC data shows that Dow Jones Industrial Average futures surged 1,112 points or 2.62% to 43,493 points; S&P futures jumped 125.75 points or 2.16% to 5,938 points; Nasdaq futures rose 363 points or 1.78% to 20,704.75 points. The "Trump trade" targets have also seen strong gains, with Trump Media & Technology Group surging 47.76% pre-market to $50.15, and Tesla also benefiting from CEO Musk's support for Trump, up 12.87% pre-market to $283.8. The US dollar index has strengthened, briefly reaching 105.326, recording the largest gain against major currencies since 2020. US bond prices have plunged, with the 10-year Treasury yield reaching a high of 4.471% today, currently at 4.412%. Market optimistic about Trump's stimulus for US economic growth Bloomberg reports that despite the vote counting not being fully completed, the market volatility is sending a clear signal that investors expect Trump's second term to be similar to his first, with a series of policies including tax cuts and deregulation to stimulate economic growth, corporate profits, and inflation. Columbia Threadneedle Investment's interest rate strategist Ed Al-Hussainy said: "If you've been doing the Trump trade over the past six weeks, you've done extremely well, the question is, will this rally last forever, is now a good time to take profits?" While investors have generally reacted positively, the market volatility also sends a stern warning, with the surge in US bond yields highlighting concerns that Trump's policies will further expand the budget deficit and reignite an inflationary spiral - the "bond vigilantes" pressuring the Washington leadership to control spending. Currently, the long positions in the S&P 500 index, Nasdaq 100 index, and Russell 2000 index have increased to around $400 billion, nearly double the level two years ago, while short positions have fallen below $100 billion for the first time since 2015. Deutsche Bank's global head of FX research George Saravelos said that the more the agenda emphasizes tax cuts and deregulation, the more favorable it is for risk assets. However, Ed Al-Hussainy believes that the Trump trade will see some profit-taking, and on the other side, there will be "buy the dips" trades, to what extent this can balance the market remains to be seen.