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.
I don’t know who the young man in the MAGA hat in this photo is. And I don’t care to know.
His name, which the internet will inevitably turn up, really doesn’t matter. It matters to his parents, of course—and to his teachers. I hope they will be reflective, and I know they should be ashamed: of this smirking young man and the scores of other (nearly all white) students from a Catholic school in Kentucky. Today, on the National Mall in Washington, they apparently mocked, harassed, and menaced a Native American man who had fought for the United States in Vietnam and who today represented both the U.S. and his Omaha nation with poise, courage, and dignity.
Strategists considered sacrificing older pilots to patrol the skies in flying reactors. An Object Lesson.
The U.S. Navy recently asked Congress for $139 billion to update its fleet of nuclear-powered submarines. Unlike “conventional” submarines, which need to surface frequently, nuclear submarines can cruise below the sea at high speeds for decades without ever needing to refuel. Defense planners expect that the new submarines will run on one fueling for the entirety of deployment—up to a half century.
The advantages of nuclear submarines over their conventional cousins raise a question about another component of the military arsenal: Why don’t airplanes run on nuclear power?
The reasons are many. Making a nuclear reactor flightworthy is difficult. Shielding it from spewing dangerous radiation into the bodies of its crew might be impossible. During the Cold War, when the threat of nuclear apocalypse led to surprisingly pragmatic plans, engineers proposed to solve the problem by hiring elderly Air Force crews to pilot the hypothetical nuclear planes, because they would die before radiation exposure gave them fatal cancers.
Once again, Trump tried and failed to strike a deal on Saturday.
President Donald Trump is trapped. He shut the government to impose his will on the incoming Democratic majority in the House of Representatives. That plan has miserably failed. Instead, Trump has found himself caught in the trap he supposed he had set for his opponents.
Now he is desperately seeking an exit.
Trump attempted Exit One on January 8.He spoke that evening to the nation from the Oval Office, hoping to mobilize public opinion behind him, pressing the Democratic leadership of the House to yield to him. That hope was miserably disappointed. Surveys post-speech found that Trump had swayed only 2 percent of TV viewers. In the 10 days since the speech, Trump’s approval ratings have dipped to about the lowest point in his presidency. The supposedly solid Trump base has measurably softened.
The Massachusetts Senator announced she was running for president on New Year’s Eve—and then had the field largely to herself.
CLAREMONT, N.H.—Elizabeth Warren wants the look on her face to be funny. It’s somewhere between stern and confused and disappointed, complete with fists briefly on her hips, like she’s playing a mom in a commercial who just found an adorable kid making a mess on the floor.
That’s how the Massachusetts senator responds late Friday when I ask her what she thinks will happen if the rest of the Democratic primary field doesn’t follow her lead, and put talking about the economy at the center of their campaigns.
“I don’t know how anyone could not talk about the economy—and corruption!— and diagnose what’s wrong in America today. I just don’t know how they could do it,” she says, then added with a little snark creeping in to her voice, “Good luck…”
Starting the process will rein in a president who is undermining American ideals—and bring the debate about his fitness for office into Congress, where it belongs.
On January 20, 2017,Donald Trump stood on the steps of the Capitol, raised his right hand, and solemnly swore to faithfully execute the office of president of the United States and, to the best of his ability, to preserve, protect, and defend the Constitution of the United States. He has not kept that promise.
Instead, he has mounted a concerted challenge to the separation of powers, to the rule of law, and to the civil liberties enshrined in our founding documents. He has purposefully inflamed America’s divisions. He has set himself against the American idea, the principle that all of us—of every race, gender, and creed—are created equal.
Insights into the little-studied realm of last words
Mort Felix liked to say that his name, when read as two Latin words, meant “happy death.” When he was sick with the flu, he used to jokingly remind his wife, Susan, that he wanted Beethoven’s “Ode to Joy” played at his deathbed. But when his life’s end arrived at the age of 77, he lay in his study in his Berkeley, California, home, his body besieged by cancer and his consciousness cradled in morphine, uninterested in music and refusing food as he dwindled away over three weeks in 2012. “Enough,” he told Susan. “Thank you, and I love you, and enough.” When she came downstairs the next morning, she found Felix dead.
During those three weeks, Felix had talked. He was a clinical psychologist who had also spent a lifetime writing poetry, and though his end-of-life speech often didn’t make sense, it seemed to draw from his attention to language. “There’s so much so in sorrow,” he said at one point. “Let me down from here,” he said at another. “I’ve lost my modality.” To the surprise of his family members, the lifelong atheist also began hallucinating angels and complaining about the crowded room—even though no one was there.
America’s largest internet store is so big, and so bewildering, that buyers often have no idea what they’re going to get.
Updated at 5:28 p.m. ET on January 17, 2019.
There’s a Gatorade button attached to my basement fridge. If I push it, two days later a crate of the sports drink shows up at my door, thanks to Amazon. When these “Dash buttons” were first rumored in 2015, they seemed like a joke. Press a button to one-click detergent or energy bars? What even?, my colleague Adrienne LaFrance reasonably inquired.
They weren’t a joke. Soon enough, Amazon was selling the buttons for a modest fee, the value of which would be applied to your first purchase. There were Dash buttons for Tide and Gatorade, Fiji Water and Lärabars, Trojan condoms and Kraft Mac & Cheese.
The whole affair always felt unsettling. When the buttons launched, I called the Dash experience Lovecraftian, the invisible miasma of commerce slipping its vapor all around your home. But last week, a German court went further, ruling the buttons illegal because they fail to give consumers sufficient information about the products they order when pressing them, or the price they will pay after having done so. (You set up a Dash button on Amazon’s app, selecting a product from a list; like other goods on the e-commerce giant’s website, the price can change over time.) Amazon, which is also under general antitrust investigation in Germany, disputes the ruling.
Readers consider whether Congress should subpoena the president's translator.
While questioning the interpreter about the substance of Trump and Putin’s talks would constitute a breach of norms, “pretending now that the old rules can function as intended is not only delusive, but dangerous,” David Frum wrote. “Subpoena the interpreter now.”
Dr. Sherman Hershfield woke up one morning and was surprised to find himself behind the wheel of his car. Somewhere between his Beverly Hills apartment and his practice in the San Fernando Valley, the silver-haired physician had blacked out. Somehow he’d avoided a crash, but this wasn’t the first time. “I didn’t know what was going on,” he admitted.
Apart from his frequent blackouts, Hershfield was in fine health for a man in his 50s. He was tall and lean, ran six miles a day, and was a strict vegetarian. “I believe a physician should provide exemplary motivation to patients,” he once wrote. “I don’t smoke and have cut out all alcohol.” Hershfield specialized in physical medicine and rehabilitation, and for decades had helped patients with brain injuries learn to walk again and rebuild their lives. Even with his experience, Hershfield didn’t know what was wrong inside his own head.
Forty years ago, women’s advocates rallied Congress to ratify it. Now it’s back in play again.
Four decades ago, I was among the crowd jammed into the gallery of the Virginia House of Delegates chamber as the members of that august body refused to hold a vote on the proposed Equal Rights Amendment. Conservative Republicans and Democrats had bottled the measure up in committee; supporters sought a vote to bring it directly to the floor.
They fell short; the ERA effort in Virginia seemed to have died.
That was a very different General Assembly and a very different Virginia. On January 15, 2019, the Virginia Senate voted to approve the ERA. The resolution now goes back to the House that rejected it 40 years ago.
If you’re confused about the ERA’s status, that’s only natural. Until recently, the Equal Rights Amendment itself—the heart of it says, “Equality of rights under the law shall not be denied or abridged by the United States or by any State on account of sex”—seemed like a dead letter. When Congress proposed the amendment in 1972, the resolution said it would become effective if approved by three-quarters of state legislatures “within seven years.”