Donald Trump’s electoral triumph has unleashed an unprecedented surge in trading activity across Wall Street’s major institutions and retail brokerages, with market participants positioning themselves for anticipated business-friendly policies under the incoming administration.
US equity trading volumes experienced a remarkable 38 per cent spike in November compared to the previous year, reaching levels unseen since the meme stock phenomenon of early 2021. Data from Cboe Global Markets indicates trading activity remains elevated above yearly averages into December.
The trading boom has benefited both retail-focused platforms like Interactive Brokers and Robinhood, alongside institutional giants JPMorgan Chase and Citigroup. The surge coincides with the S&P 500’s impressive 27 per cent year-to-date gain, pushing the index to multiple record highs.
Rick Wurster, incoming CEO of Charles Schwab, noted an “incredible level” of investor engagement, expressing confidence that this momentum will persist into 2025. Major banks have reported substantial gains, with JPMorgan Chase projecting fourth-quarter trading revenues to exceed 15 per cent growth year-over-year, tripling analyst expectations.
Retail platform Robinhood witnessed a 16 per cent increase in equity trading volumes between October and November, while cryptocurrency trading exploded by over 500 per cent. The company’s chief brokerage officer, Steve Quirk, described “massive amounts of volume” on election night, particularly in cryptocurrency and high-profile stocks like Tesla.
The market optimism extends beyond trading volumes, with brokerage stocks outperforming the broader market. Shares in Interactive Brokers and Charles Schwab have surged 47 per cent and 31 per cent respectively over the past quarter, while Robinhood’s stock has nearly doubled, bolstered by its thriving cryptocurrency business.
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