Stock market today: live updates

Stock futures rose sharply in overnight trading as investors began to speculate that former President Donald Trump could have an advantage in the presidential race.

Futures on the Dow Jones Industrial Average added 711 points, or about 1.7%. S&P 500 futures increased by 1.5% and Nasdaq 100 futures rose by 1.5%.

Bitcoin jumped to a record high and the US dollar – which Wall Street expected to rise in the event of a Trump victory – rallied against other global currencies. Futures for the small cap benchmark Russell 2000also a likely Trump beneficiary, rose 2.5%.

Shares of Trump Media & Technology Groupa social media company closely linked to the candidate saw a 40% increase in overnight trading on the Robinhood brokerage platform.

The 10-year Treasury yield rose to about 4.43% on speculation that Trump's proposed tax cuts and other spending plans would increase the budget deficit, while possible tariffs could boost inflation again.

Americans across the country cast their votes in the close race between Trump and Vice President Kamala Harris. As of 1:30 a.m. ET, NBC News had projected that Trump had won 246 electoral votes, including the battleground states of North Carolina and Georgia. Pennsylvania and Wisconsin are still too close to call. He needs 270 Electoral College votes to win. Follow CNBC's 2024 election live blog here.

NBC News also predicted that Republicans would take back the Senate, but control of the House was still uncertain.

Goldman Sachs forecasts that a Trump victory and a Republican victory in Congress would trigger a 3% rise in the S&P 500. Even a Trump victory and a divided Congress would result in an increase of about 1.5%, the bank predicts. On the other hand, a Harris victory in a divided Congress would result in a 1.5% decline in the S&P 500, the bank told clients.

“I particularly agree with the view that a Trump victory would be very good for stocks,” Strategas Chief Executive Officer Jason Streitert said on CNBC's “Power Lunch” on Tuesday. “And I think a Harris win wouldn’t be particularly good for risk assets.”

Trump's tax-cutting agenda could provide a significant boost to American businesses, but high tariffs and a possible global trade war under his presidency could create more uncertainty and a resurgence of inflation. Under a Harris administration, the risk of tougher regulations could lead to greater scrutiny of industries like banking and health care, while Democrats' support for clean energy could give a boost to electric vehicle and solar companies.

Investors are also paying close attention to whether the partisan makeup of the chambers of Congress remains divided. A Republican or Democratic victory could lead to more drastic spending changes or a major overhaul of tax policy.

The stock market staged a broad rally on Tuesday ahead of the election results, with the S&P 500 gaining 1.2%, putting the benchmark's 2024 gains at over 21%.