U.S. stock markets reacted violently to Donald Trump’s victory in the presidential race Tuesday night, plunging as much as 800 points in futures trading before equity markets opened Wednesday morning.
However, by mid-morning, the Trump-driven market hysteria had subsided with the major stock indices moving between minor gains and losses from the previous day.
At about 10:30 a.m., the Dow Jones Industrial Average was trading at 18,330, down about 12 points, or less than 1 percent, from the close of trading Tuesday.
The S&P 500 was trading at about 2,132, down about 8 points — also less than 1 percent — from its close Tuesday.
The initial market reaction was not unexpected.
Many investors had predicted volatility in the financial markets on the heels of a Trump win because of his promise to shake up the status quo, and investors don’t like uncertainty. Democrat nominee Hillary Clinton represented a continuation of the current government and administrative policies, which many investors saw as a safer bet.
But Trump, who has promised to cut taxes and spend money on infrastructure projects, seemed to alleviate some of those fears with his victory speech.
Still, most investors warn that volatility in the markets is likely to continue for the foreseeable future.