The three major stock indexes have risen more significantly by midday Wednesday following Presidential-elect Donald Trump’s stunning upset against Hillary Clinton.
Nasdaq is up by more than 30 points or 0.75 percent. S&P 500 rose by more than 20 points, or about 1 percent.
Scott Clemons, chief investment strategist at Brown Brothers Harriman, told CNBC that what’s happening is reminiscent of Brexit.
“We had a trial run in June with the Brexit vote,” Clemons said. “Like Brexit, investors and traders are realizing that this is a process, not an event. What you’re seeing right now is a pretty predictable repositioning of portfolios.”
The midday numbers show a huge recover from Tuesday night, when Trump inched toward victory and the three major stock indexes plummeted, with Dow plunging by triple digits.
“The market’s initial response to the probability of a Trump win was, predictably enough, one of shock and fear as the prices of traditionally risky assets tumbled and perceived safe havens rose,” James Athey, fixed income fund manager at Aberdeen Asset Management, told CNBC. “However the increased prospect of tax cuts and a generally pro-growth set of policies from him, aided and abetted by the Republican clean sweep of congress, has seen some of this initial reaction begin to reverse.”
As Clinton delivered her concession speech on Wednesday, some traders at the New York Stock Exchange booed and chanted, “lock her up!” according to CNN Money.
“Ding-dong, the witch is dead,” one floor trader shouted.