Here are the best-performing S&P 500 stocks after US election results

S&P 500 It reached a record level yesterday (November 6) following the result of the US elections. The index closed at 5,929 points with an increase of 2.53 percent. Although the index performs well, some people US artists He did even better. Based on the type of stocks being picked, I feel like I can learn something about what could happen from here.

Takeover potential

Best performing stock yesterday Discover Financial Services. The share price increased by 20 percent. This is also about: Capital OneIt increased by 15%.

There is currently a $35 billion deal in question in which Capital One wants to take over Discover. This would be the largest credit card issuer in the country in terms of loan volume. However, approval is still awaited from the government. With Trump’s victory yesterday, there is more optimism that he may soon get the green light to make this happen. Trump is seen as pro-business and sees this as a key policy promise to revitalize the economy.

I think this is a really interesting example of how stocks can move based on something like an election outcome. He emphasizes that politics affects the stock market, including certain situations like this.

Of course, nothing concrete has been done, so the jump in these two stocks yesterday is entirely based on speculation. But considering Discover is the biggest gainer, it shows how much investors are paying attention to what just happened.

The favorite of retail investments is back

Another name that showed the best performance yesterday was Tesla’s (NASDAQ:TSLA). I’m seriously considering buying this stock, and I really should have bought it when the stock dropped earlier this summer!

Tesla shares are up 30% in the last year, and 15% of that move happened yesterday. One of the key factors here was that Elon Musk became a vocal supporter of Trump during the campaign. So I think some speculative traders are using Tesla shares as a way to express their view that Trump will win. Likewise, if he had lost, I think the value of the stock would have fallen.

I do not invest in stocks for such speculations. But looking ahead, I think Tesla can be successful. Because Musk is close to the President, I think he can help influence policy towards electric vehicles. He could also lobby for more government aid, favorable terms on subsidies, and other factors that would ultimately benefit Tesla.

Tesla will also benefit from some of Trump’s policies, including low taxation. With some manufacturing facilities in the U.S., it may gain a greater competitive advantage over its counterparts abroad, especially if other companies face tariffs.

Tesla shares as a risk price-earnings The rate is 128. This is too high and may indicate that the stock is overvalued.