Markets respond following election night

WASHINGTON (NEXSTAR) -- On the news of a projected victory for former President Donald Trump, the Dow Jones Industrial Average closed up nearly 3.5% and hit a new all-time high.

“Clearly, investors are buying into stocks based upon the surprisingly robust showing on the part of Republicans led by President Trump winning the White House,” said Bankrate Senior Economic Analyst and Washington Bureau Chief Mark Hamrick.

Bitcoin also set a record high on Wednesday. Trump has promoted cryptocurrency and promised to fire SEC Chairman Gary Gensler, who is cracking down on crypto.

The yield on 10-year Treasury bonds increased from 4.29% late Tuesday to 4.44%. Hamrick said that indicates possible higher inflation and increasing government debt.

Economists say the 2017 tax cuts from Trump’s first term have increased the national debt. Parts of the cuts expire next year, but Trump has promised to renew them.

“I’m sure virtually all of us would like to see most of that extended,” said Senate Minority Leader Mitch McConnell (R-Ky.).

Hamrick said extending those tax cuts could also lead to inflation.

“If you continue the Trump tax cuts, more cash to spend, that inflates the economy and could lead to higher prices,” Hamrick said.

Against foreign currencies, the value of the dollar strengthened on Wednesday. Hamrick said that indicates a bet on the American economy.