The dollar surged, stock markets soared, and Bitcoin hit a new record Wednesday as Donald Trump returned to the White House, defeating Vice President Kamala Harris in a comeback victory that has sparked fresh expectations of inflation.

The news of Trump’s win drove Wall Street futures up even before the market’s opening bell, with the former president confidently proclaiming a “magnificent” victory. European stocks surged in morning trading, while markets in Asia had mixed reactions. Chinese shares, in particular, fell as investors anticipated a renewal of tariffs on Chinese imports under Trump.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, commented that the “Trump trade is in full swing,” with markets pricing in expectations for significant tax cuts that could fuel inflation. These moves are likely to impact the Federal Reserve’s rate decisions, potentially leading to fewer rate cuts than previously expected.

The dollar climbed over 1.5% against the euro, while US Treasury yields also rallied. The Federal Reserve is scheduled to announce its rate decision on Thursday, with investors expecting a likely 25-basis-point cut.

“Trump’s policies, perceived as inherently inflationary, could mean elevated interest rates over the coming years,” noted Susannah Streeter, head of money and markets at Hargreaves Lansdown. She added that a Trump presidency could see reduced regulation on major tech and finance sectors.

Tesla shares skyrocketed by over 15% in pre-market trading after Trump praised CEO Elon Musk, a vocal supporter, as a “star” during his victory speech.

Bitcoin Breaks Record

Bitcoin surged by $6,000 to reach a new all-time high of $75,371.67, surpassing its previous peak of nearly $74,000. Trump has vowed to make the US a “cryptocurrency capital” and is expected to assign Musk to lead an extensive audit of government spending.

Elsewhere in commodities, oil prices dipped on expectations that Trump’s energy policies will lead to more domestic oil production, emphasizing energy independence and favoring fossil fuels by reducing regulatory restrictions.

With markets responding dramatically to Trump’s victory, global investors are closely watching the economic shifts that could unfold as he begins his second term in office.