Graphics by Yang In-Sung

Wall Street stocks hit a record high after Donald Trump defeated Kamala Harris in the U.S. presidential election on Nov. 6. The stock rally was powered by investors’ belief that Trump’s pro-business agenda, such as tax cuts, would boost corporate earnings and economic growth. With uncertainty over the country’s leadership resolved, the so-called Trump trade went into full swing, with stocks, the dollar and bitcoin prices rising sharply.

The South Korean stock market, however, was largely left out of this full-scale “Trump rally” when it opened the following day on Nov. 7. The benchmark KOSPI index inched up by just 0.04% to close at 2,564.63. The small-cap KOSDAQ, dominated by bio and battery stocks, fell by 1.3%. Only a few Trump-friendly sectors, such as shipbuilding, defense, and aerospace, saw gains.

Shares in shipbuilding companies, including Hanwha Ocean and Hyundai Hyms, surged over 20% after Trump expressed hopes for close cooperation with South Korea’s shipbuilding industry. Traders in Yeouido’s finance district even circulated an old photo of Trump’s 1998 visit to Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean) in excitement.

Aerospace stocks on the KOSDAQ also rallied, reaching their daily price limit of 30%, boosted by one of Trump’s most avid supporters, SpaceX CEO Elon Musk.

Conversely, renewable energy stocks, including Hanwha Solutions and OCI, fell to 52-week lows as expectations for a revival of fossil fuel energy dimmed their outlook.

The three U.S. major indexes soared. The Dow Jones jumped 3.57% to 43,729.93, the S&P 500 rose 2.53% to 59,294.04, and the Nasdaq Composite climbed 2.95% to close at 18,983.47. Even the small-cap Russell 2000 index surged 5.84%, reflecting optimism that Trump’s protectionist policies could benefit domestically focused companies.

Billionaire Elon Musk stands to benefit from his support for the president-elect, as Tesla’s stocks surged 14.8% to close at $288.53 on this day. Korean Tesla shareholders, who own $20 trillion worth of the stock, also cheered at the rally. Major banks, including JPMorgan Chase and Wells Fargo, also posted double-digit gains of 11.5% and 13.1%, respectively, driven by expectations of deregulation.

Bitcoin soared to a new record high above $75,000. Trump’s campaign indicated a positive stance on cryptocurrency, vowing to make the U.S. the crypto hub of the world.

But it was a bleak day for bond investors. As bond prices dropped, yields on 10-year Treasury notes reached 4.48% at one point. Trump’s proposed tax cuts raised concerns that the government would issue more Treasury bonds to fund these policies, further pushing down bond prices. Concerns over potential trade tariffs stoked inflation fears, sending bond prices downward.