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.
Despite the easing of taboos and the rise of hookup apps, Americans are in the midst of a sex recession.
These should be boom times for sex.
The share of Americans who say sex between unmarried adults is “not wrong at all” is at an all-time high. New cases of HIV are at an all-time low. Most women can—at last—get birth control for free, and the morning-after pill without a prescription.
If hookups are your thing, Grindr and Tinder offer the prospect of casual sex within the hour. The phrase If something exists, there is porn of it used to be a clever internet meme; now it’s a truism. BDSM plays at the local multiplex—but why bother going? Sex is portrayed, often graphically and sometimes gorgeously, on prime-time cable. Sexting is, statistically speaking, normal.
Each year, local governments spend nearly $100 billion to move headquarters and factories between states. It’s a wasteful exercise that requires a national solution.
The Amazon HQ2 saga had all the hallmarks of the gaudiest reality TV. It was an absurd spectacle, concluding with a plot twist, which revealed a deep and dark truth about the modern world.
Fourteen months ago, Amazon announced a national beauty contest, in which North American cities could apply to win the honor of landing the retailer’s second headquarters. The prize: 50,000 employees and the glory of housing an international tech giant. The cost? Just several billion dollars in tax incentives and a potential face-lift to the host city. Then last week, in a classic late-episode shock, several news outlets reported that Amazon would split its second headquarters between Crystal City, a suburban neighborhood near Washington, D.C., and Long Island City, in Queens, New York.
In the wake of an upper-middle-class exodus, the Republican Party needs to win working-class voters—or lose its grip on power.
There was a time when Charlie Baker, the popular Republican governor of Massachusetts, who won his bid for reelection by a wider margin than did the stalwart progressive Senator Elizabeth Warren, might have been considered one of the GOP’s leading lights. As it stands, he is an oddity. Though the Republican Party still commands the allegiance of some secular, college-educated, upper-middle-income voters in the suburbs of big cities, such voters represent a shrinking share of its coalition.
Admittedly, this is not an entirely new development. Voters who describe themselves as socially liberal and fiscally conservative, or rather socially progressive and fiscally pragmatic, have been gravitating to the Democrats since the Clinton era. But the 2018 midterm elections really do feel like the culmination of this decades-long trend. Rockefeller Republicans have fully given way to Bloomberg Democrats, a shift that seems especially pronounced among younger elite-educated professionals, and it is hard to envision a reversal. Henceforth, the Republican Party will either win working-class voters or lose its grip on power.
It is best not to diagnose the president from afar, which is why the federal government needs a system to evaluate him up close.
President Donald Trump’s decision to brag in a tweet about the size of his “nuclear button” compared with North Korea’s was widely condemned as bellicose and reckless. The comments are also part of a larger pattern of odd and often alarming behavior for a person in the nation’s highest office.
Trump’s grandiosity and impulsivity have made him a constant subject of speculation among those concerned with his mental health. But after more than a year of talking to doctors and researchers about whether and how the cognitive sciences could offer a lens to explain Trump’s behavior, I’ve come to believe there should be a role for professional evaluation beyond speculating from afar.
I’m not alone. Viewers of Trump’s recent speeches have begun noticing minor abnormalities in his movements. In November, he used his free hand to steady a small Fiji bottle as he brought it to his mouth. Onlookers described the movement as “awkward” and made jokes about hand size. Some called out Trump for doing the exact thing he had mocked Senator Marco Rubio for during the presidential primary—conspicuously drinking water during a speech.
In today’s economy, well-off people live in big cities, while everyone else gets pushed out. Bringing new Amazon offices to Virginia and New York could hasten the process.
On the long list of things that New York City desperately needs—money for the subway, for affordable housing, for schools and public hospitals and universal pre-K—more high-paying, high-skilled jobs is not at the top of the list. It could be argued, in fact, that many of New York’s ills are caused by the explosion of high-paying jobs in a city where the construction of affordable housing and transit improvements has not kept up pace.
Yet New York and hundreds of other cities spent the past year trying to convince Amazon to bring 50,000 jobs to the city, a process that was rewarded on Tuesday when Amazon formally announced that it would set up new offices in Queens and in and the Crystal City area of Arlington, Virginia.
When I was elected to the House of Representatives two years ago, I found the problems weren’t as bad as I’d expected—they were worse.
If you are among the 11 percent of Americans who believe that everything in Congress is going swimmingly, then save some time and stop reading right now. (But first, please share whatever experimental drugs you are on.) But if you are among the 87 percent of people who are concerned about what is going on in Congress, then I have an important message for you: It’s much worse than you think.
On Tuesday, Congress reconvenes after a month of campaigning. Lame-duck legislation will likely get the most attention, but a more important debate will occur among surviving incumbents and new members in each caucus about how to organize for the next Congress. This debate about rules and process, more than any Russia-related investigation or wall-funding-fueled shutdown, will determine whether Congress can avoid two years of dysfunction or whether it will continue its slide into irrelevance.
The state is bluer than ever as Republican leads on election night in several competitive House races slowly evaporate.
LOS ANGELES –Democrats had already reclaimed the House of Representatives before California’s election returns came in last week, but since Election Day the party has racked up a nice bonus here: After the counting of vote-by-mail ballots, Democrats appear to have won four of the state’s six most competitive congressional races. In the remaining two, a Democrat has just taken a slim lead in one, while another Democrat barely trails in the other.
That means California is bluer than ever, with Lieutenant Governor Gavin Newsom becoming the first Democrat to succeed a fellow partisan as governor of this state since 1887, and “California Democrats Set to Dominate Congress,” as a Breitbart Newsheadline put it with alarm. Not only is Nancy Pelosi, the newly reelected representative of California’s 12th district, poised to resume the speakership, but vocal critics of Donald Trump in the state’s newly expanded 43-member Democratic delegation will be in line to chair key committees.
“The fire, to me—it’s like an ocean. It’s so strong that we don’t really stand a chance of doing much to it.”
Seven years ago, Park Williams took an hour-long drive with a couple friends to see a wildfire. He remembers it now as a revelation.
At the time, Williams was researching the scraggly pine forests that dot the southwestern United States. He worked at a national laboratory that overlooks more than a million acres of protected desert forest. On June 26, 2011, the wind knocked down an aspen somewhere in that national forest, toppling it into a power line and igniting a small flame. The landscape was parched, the winds were unruly, and soon that flame had become the largest wildfire in New Mexico’s history.
Williams couldn’t go to work—his lab had been evacuated—so he and his friends drove around town, hoping to catch a glimpse of the blaze. Eventually they came to a spot just below the mountains. He remembers the air outside the car reeking like an ancient brick fireplace. The fire stood a mile off. “It looked like a skyline of buildings,” he told me. “You could see it in the mountains above you.”
Early data suggests that enthusiasm and increased turnout from communities of color were at least part of the reason the GOP lost Wisconsin’s governor’s mansion.
Scott Walker was elected governor of Wisconsin eight years ago. He’s survived a recall attempt, a re-election bid, a brief flirtation with running for the GOP’s nomination for president, and years of bitter opposition from Wisconsinites who fought against his hardline policies on voting rights, health-care, education, and the state safety net. He’s led what might be considered the model of a Republican state takeover in the era of Trumpism. And he lost the 2018 election to Democratic challenger Tony Evers by a margin of 1.2 points, a total of just over 30,000 votes.
As the dust settles from the midterm elections, and political observers attempt to divine exactly what happened across the country, that result is worth a closer look. In particular, the limited data available on the Wisconsin race suggest that increased turnout among black and Latino voters was one of the biggest shifts between the 2014 midterm and this election. If that indication holds true, it would mean that in a state characterized over the past decade by Walker’s racial politics, in a country currently facing rising bigotry and voter suppression, minority voters were Scott Walker’s bane.
Trump’s acting attorney general can’t legally hold the office—and that’s a problem for everyone.
President Donald Trump appointed Matthew Whitaker as acting attorney general last week, despite the fact that he cannot legally hold the office. While the president could fix his mistake with any lesser official and in any normal time, the attorney general is no lesser official and this is no normal time. Whitaker takes office during a time of extreme constitutional conflict involving investigations of the president, claims of abuse of law-enforcement and national-security powers, and combat between the executive and legislative branches. In order to prevent a breakdown of federal law enforcement, the White House should hurry to select a permanent attorney general before any more damage is done.