Before the sun even rose on Wednesday, U. S. stock futures were painting a dramatic picture. The Dow Jones Industrial Average futures jumped by over a thousand points, or 3. 2%, while the S&P 500 and Nasdaq futures weren't far behind, rising by 2. 3% and 1. 7%, respectively. What triggered this sudden surge? The news that former President Donald Trump was projected to win another term in the White House.

Tesla, the electric vehicle company owned by Trump supporter Elon Musk, saw its shares spike by a whopping 14. 5% in premarket trading. This wasn't just a coincidence; Musk and his political action committee, America PAC, had been actively backing Trump, even giving away $1 million a day in the final weeks of the campaign to registered voters in key states.

Trump Media and Technology Group, unsurprisingly, also benefited from the news. Its shares soared by 34% in premarket trading, adding to the 15% rise from the previous day. This was likely a result of investors' anticipation of Trump's victory and the potential benefits it could bring to the company.

Bitcoin, often seen as a beneficiary of Trump's policies, reached a new record high of $75, 000. The 10-year Treasury yield also climbed by an impressive 4. 43%.

"It seems like a Trump win is on the horizon, along with Republican victories in the House and Senate, " Mark Mobius, the chair of the Mobius Emerging Opportunities Fund, told CNBC. "If this happens, the U. S. economy could really take off. "

But let's pause and think. Why do these stocks and futures react so strongly to political news? And is it wise to make investment decisions solely based on election outcomes?

Wild Market Swings: A Look at Stock Futures and Election Impact

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