As election results rolled in, global and futures markets responded to the surprisingly close contest by plummeting, with the Dow dropping nearly 800 points. Follow along here for continuing updates on how the world financial markets are responding to the election of Donald Trump as 45th president of the United States.
While the U.S. election was still being decided on Tuesday night, markets in Asia took a dive during active trading as Donald Trump pulled ahead of projected-winner Hillary Clinton.
But markets in Asia bounced back this morning: An hour into trading, the Nikkei is up 6 percent, wiping out losses from yesterday. Stocks in Hong Kong and Shanghai have also recovered: Both the Hang Seng and Shanghai Composite have soared pass yesterday’s losses. (An odd sidenote: a stock in China which sounded like “Trump Wins Big” rallied while another stock which sounded like “Aunt Hillary” tumbled as votes were still being counted.)
It’s worth watching how investors in China will react to the actual Trump presidency. After all, the candidate has suggested that China’s economic relationship with the U.S. might get a lot more complicated once he takes office. During the course of his presidential campaign, Trump accused China of devaluing its currency (a claim that has been debunked) and unfairly taking manufacturing jobs away from Americans. Trump has also suggested imposing a 45 percent tariff on Chinese-made goods in order to reduce the trade deficit and bring jobs stateside, which would create a trade war between the two nations and undoubtedly affect China’s economic growth.
Reuters reports that Chinese President Xi Jinping congratulated Trump in a message earlier today, stating that he’s looking forward to working with Trump to “uphold the principles of non-conflict, non-confrontation, mutual respect, and win-win cooperation." For now, stocks in China, like those in the U.S., seem accepting of the impending Trump administration.
At the end of trading hours on Wednesday, it certainly seems that investors have digested Trump’s surprise victory in the U.S. Presidential election.
The Dow, S&P 500, and NASDAQ all rallied back from precipitous drops in the futures markets, with each closing up by at least 1 percent. The reversal was swift and intense—for the S&P the bounce back was largest since the days of the 2008 banking crisis. The Dow closed up 257 points, after diving 800 points last night in futures trading. Many analysts are attributing the market’s fast recovery to the tone of Trump’s late night acceptance speech, along with the potential benefits for Wall Street a Trump presidency could hold. Though Wall Street was expecting a Clinton win, the numbers seem to indicate that it is just as welcoming to the Trump presidency.
Asian markets open in just a few hours, and their performance tonight will either validate election night panic in emerging markets (the Nikkei plunged 5 percent, while the Hang Seng fell by 2 percent), or evaporate in the face of U.S. investor confidence.
DeVry Education Group is up 9 percent in today’s trading; Apollo Education Group, the company that owns several for-profit institutions—including the University of Phoenix—is up 7 percent; Bridgepoint Education (which was forced to forgive $24 million in student debt by the Consumer Financial Protection Bureau) up 17 percent; and Strayer Education (one of the most successful for-profit colleges) is up 12 percent.
The premise for investor confidence is that for-profit colleges—which have come under intense scrutiny in recent years by The Department of Education for fraudulent marketing, bad results, and saddling students with student-loan debt—might enjoy looser regulatory oversight once Trump becomes President. Afterall, Trump University, which shuttered in 2010, was a for-profit education company. Before Trump is sworn in next year, he will appear in court just after Thanksgiving as a witness in a class-action civil trial over alleged fraud at Trump University.
Bloombergreports that the billionaire investor Carl Icahn—a long time Trump supporter—left the president-elect’s victory party in the wee hours of the morning to bet $1 billion on the U.S. stock market.
Icahn’s take was that the 100-point drop in the S&P 500 was a temporary and irrational reaction that would soon reverse itself. And it looks like he was right, near the close of trading, the S&P was up more than 1 percent—the largest reversal for the index since the 2008 crisis.
The companies are soaring as analysts reckon that Trump will row back on the Department of Justice’s ruling this summer to phase out privately run jails. The companies could benefit still further from Trump’s plan for the mass deportation of immigrants.
And what about oil?
During his campaign, Trump has pledged to implement what he calls an “America first energy plan.” That plan calls for total energy independence achieved by undoing President Obama’s executive actions meant to curb energy production or emissions in favor of more climate-friendly policies, more exploration of shale, oil, and natural gas reserves, and exploration of “clean coal”.
Conversely, Trump has said that he would reverse the current U.S. commitment to battle climate change, including pulling out of the Paris Agreement. My colleague Robinson Meyer wrote about the potential environmental consequences of a Trump presidency here, saying:
This could shatter the international consensus on reducing greenhouse-gas emissions, similar to how the second Bush administration’s withdrawal from the Kyoto Protocol effectively ended that treaty’s functional life within the United States. It could enable other countries to abandon their commitments and emit greenhouse gases at much higher rates.
While markets have rebounded broadly, there are still big winners and big losers today.
At the conclusion of this election, concerns over the diminished power of the second amendment have seemed to dissipate. With Americans no longer concerned that a Clinton presidency would mean stricter gun control laws, the sense of urgency causing some to stock up on arms may have eased, causing a drop in major gun manufacturing stocks, such as Smith and Wesson, which declined by more than 3.75 percent around 12:20pm.
On Monday, world markets surged ahead on the projection that Democratic candidate Hillary Clinton would narrowly capture the presidency.
U.S. indicators—the Dow, the Nasdaq, and the S&P 500—rose 2 percent on forecasts predicting a Clinton victory.
But as the tides began to change last night—with Donald Trump pulling an eventual upset to become the U.S. president-elect—the market began to react. For a variety of reasons, markets don’t always respond well to uncertainty. The market shifts were somewhat predictable: the peso plunged to a record low, U.S. futures dived, Asian markets—particularly the Nikkei which dropped 5 percent by close—also dived, while gold rallied big. Analysts noted that the volatility seen last night was much greater than following the surprising result of the Brexit vote earlier this year.
This is not the outcome investors anticipated, but U.S. markets have since recovered: all three indices are surging ahead gaining nearly 1 percent by noon.
So why are the markets worried? First of all, the policy statements of Mr Trump have been both vague and erratic—on issues such as trade, foreign policy, the independence of the Federal Reserve and even the commitment to repay Treasury bonds in full. What is hard to know is how serious his policy proposals might be, and how much Congress would allow him to enact. He has more freedom in foreign policy areas than in the domestic arena. That is why emerging markets might take the greatest hit.
People who refuse to get the COVID-19 vaccine will have higher health-care costs. The rest of us will foot the bill.
Imagine it’s 2026. A man shows up in an emergency room, wheezing. He’s got pneumonia, and it’s hitting him hard. He tells one of the doctors that he had COVID-19 a few years earlier, in late 2021. He had refused to get vaccinated, and ended up contracting the coronavirus months after most people got their shots. Why did he refuse? Something about politics, or pushing back on government control, or a post he saw on Facebook. He doesn’t really remember. His lungs do, though: By the end of the day, he’s on a ventilator.
You’ll pay for that man’s decisions. So will I. We all will—in insurance premiums, if he has a plan with your provider, or in tax dollars, if the emergency room he goes to is in a public hospital. The vaccine refusers could cost us billions. Maybe more, over the next few decades, with all the complications they could develop. And we can’t do anything about it except hope that more people get their shots than those who say they will right now.
And now my husband wants to move halfway across the country for his job.
I’ve been married for 25 years to a man who went from having many sexual issues and hang-ups to being impotent, and I am now in a totally sexless marriage. He can’t be helped, and frankly, I am not attracted to him at all anyway. We’re good partners and parents, and our family works well.
At the suggestion of a therapist, I sought out and found a wonderful man in a similar situation. We became friends and then lovers. The sex is the best of my entire life. It has given me so much joy and made me feel alive again. It’s also one of the best relationships I’ve ever had. No games, lots of laughs and connecting on many levels. The whole affair has made me a happier person and less resentful of my husband and marriage.
When Michaeleen Doucleff met parents from around the world, she encountered millennia-old methods of raising good kids that made American parenting seem bizarre and ineffective.
At one point in her new book, the NPR journalist Michaeleen Doucleff suggests that parents consider throwing out most of the toys they’ve bought for their kids. It’s an extreme piece of advice, but the way Doucleff frames it, it seems entirely sensible: “Kids spent two hundred thousand years without these items,” she writes.
Doucleff arrives at this conclusion while traveling, with her then-3-year-old daughter, to meet and learn from parents in a Maya village on the Yucatán Peninsula in Mexico; in an Inuit town in a northern Canadian territory; and in a community of hunter-gatherers in Tanzania. During her outings, she witnesses well-adjusted, drama-free kids share generously with their siblings and do chores without being asked.
By the early 2040s, Trump-appointed chief judges will simultaneously sit atop nearly every appeals court in the country.
The Trump presidency may be over, but the Trump era has only just begun—at least when it comes to influence over the nation’s courts. Measured solely by the number of judges he appointed, Donald Trump’s impact is staggering: 234 judges, including 54 powerful appellate judges, almost one out of every three. By comparison, President Barack Obama appointed 172 judges (30 of them appellate) in his first term, while George W. Bush managed 204 (35 appellate). But Trump will have an even greater influence than this measurement suggests. That is because his judges won’t reach the apogee of their power until the early 2040s, when Trump-appointed chief judges are on track to simultaneously sit atop nearly every appeals court in the country.
The U.S. stumbled early in the pandemic, but the vaccine rollout could reboot the country’s image.
Every so often, an emerging technology changes the global balance of power, alters alliances, and shifts the relationships among nations. After World War II, nuclear weapons overthrew all of the existing geopolitical paradigms. The countries that got the bomb were considered global powers; countries that did not have it sought it, so that they could be considered powerful too.
Now a different technology is shifting global politics: the coronavirus vaccines—or, quite possibly, vaccines more broadly. Unlike nuclear weapons, vaccines don’t have the potential to end life on Earth, and their production and distribution will never require rigid rules to limit who gets them. Indeed, the international institutions being created to govern vaccine distribution are designed to promote proliferation, not restrict it. Nevertheless, global politics will be shaped by the vaccines, as will domestic politics in some countries, and in ways that might outlast this particular pandemic.
If your social life is leaving you unfulfilled, you might have too many deal friends, and not enough real friends.
“How to Build a Life” is a weekly column by Arthur Brooks, tackling questions of meaning and happiness.
Arthur C. Brooks will discuss the science of happiness live at 11 a.m. ET on May 20. Register for In Pursuit of Happiness here.
Think for a minute about your friendships. Some friends you would text with any silly thought; others you only call a couple of times a year. Some are people you look up to; others you like, but do not especially admire. You fit into these categories for others as well—maybe you are helpful to one person, and a confidant to another. We get different things out of different relationships, which is all well and good.
There is one type of friend almost everyone has: the buddy who can help you get ahead in life, the friend from whom you need or want something. You don’t necessarily use this person—the benefit might be mutual—but the friendship’s core benefit is more than camaraderie.
When articles about pandemic risk come with images of beachgoers, readers draw incorrect conclusions about how the virus spreads.
During a pandemic, public-health messaging is essential to saving lives. Media organizations have played a major role in that messaging over the past year, and not always for the better.
Across the English-speaking world, many news stories about the spread of COVID-19 have been accompanied by photographs of people in outdoor settings, particularly beaches. “Many news organizations have seized upon beaches, and scenes of beachgoers, as a sign of why things are so bad in the United States,” Zeynep Tufekci wrote in The Atlantic last summer. She has compiled many examples of the phenomenon in an ongoing Twitter thread.
Why publications keep using these photos is hard to pinpoint. In a health crisis, many people may feel provoked by the sight of others cavorting in the sun—even though one of the best ways to avoid COVID-19, which spreads easiest when individuals inhale particles exhaled by others, is to avoid public indoor spaces in favor of outdoor spaces. Or perhaps beach pictures, which have a somewhat aspirational quality and typically feature attractive people wearing bathing suits, just draw lots of readers.
A deadlier and more transmissible variant has taken root, but now we have the tools to stop it if we want.
Across the United States, cases have started rising again. In a few cities, even hospitalizations are ticking up. The twists and turns of a pandemic can be hard to predict, but this most recent increase was almost inevitable: A more transmissible and more deadly variant called B.1.1.7 has established itself at the precise moment when many regions are opening up rapidly by lifting mask mandates, indoor-gathering restrictions, and occupancy limits on gyms and restaurants.
We appear to be entering our fourth surge.
The good news is that this one is different. We now have an unparalleled supply of astonishingly efficacious vaccines being administered at an incredible clip. If we act quickly, this surge could be merely a blip for the United States. But if we move too slowly, more people will become infected by this terrible new variant, which is acutely dangerous to those who are not yet vaccinated.
A hint of warmth from our sun helped reveal a mysterious comet’s secrets.
In 2019, Gennady Borisov, an amateur astronomer in Crimea, discovered his seventh comet. This icy object wasn’t like the others Borisov had found, or like any of the other comets in the solar system. This one wasn’t orbiting the sun.
Instead, it had been drifting alone in interstellar space, following its own path, until one day, it entered our solar system and grazed past the sun. Warmed by the heat of a star, for the first time in who knows how long, the icy comet thawed just a little bit.
Some of Earth’s most powerful telescopes captured the cosmic interloper as it went by. Astronomers could see the comet enveloped in a fuzzy glow of once-frozen dust particles loosed by the sun.
By analyzing these particles from afar, researchers have managed to learn about the comet’s composition, its origins, and its long journey here. One recent finding demonstrates something rather melancholy.
Across the world, leaders withhold property rights to cement their control even as they impoverish their own people.
Development economists typically tell a compelling story about land reform: Countries can supercharge their development by leveling inequality and radically reallocating assets. In East Asia, nations that followed this simple formula transformed themselves into economic powerhouses.
So why haven’t more countries adopted this well-established blueprint? The governments that have the will and capacity to adopt major land reforms are typically authoritarian. Most authoritarian governments seek first and foremost to entrench their power. These governments would rather control their rural populations than see them thrive and become autonomous. For authoritarians, land reform is a convenient tool to destroy rival elites in the countryside while entangling rural workers in the tentacles of authoritarian influence.