Investing.com - U.S. stock futures were sharply lower on Wednesday morning after Donald Trump won the election to become the 45th president of the United States, shattering expectations for a victory by Democrat Hillary Clinton.
The blue-chip Dow futures index fell 359 points, or 1.96%, by 6:41AM ET, the S&P 500 futures index was down 46.5 points or 2.14%, while the tech-heavy Nasdaq 100 futures slumped 127.37 points, or 2.68%.
Overnight the S&P 500 futures index slumped 5%, hitting a trading limit. CME Group rules do not allow its stock-market futures to fall by more than 5%.
Market players had viewed Clinton as the candidate of the status quo and there is much uncertainty over what a Trump victory will mean for U.S. foreign policy, international trade deals and the domestic economy.
S&P 500 futures pared back losses after Trump struck a conciliatory tone in his acceptance speech, thanking Clinton for her years in public service and vowing to "deal fairly" with other nations.
The S&P 500 VIX Futures index was last up 18.52% in an indication of market fears over the prospects of a Trump presidency. The index had shot up 40% at one stage overnight, but retraced after Trump's acceptance speech.
In the currency market, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 97.28, down 0.6% for the day after dropping to overnight lows of 95.91.
The dollar remained on the back foot amid expectations that that a Trump win could derail the Federal Reserve’s plans to hike interest rates in December.
Investors are currently pricing in a 66.8% chance of a rate hike at the Fed's December meeting; according to federal funds futures tracked Investing.com's Fed Rate Monitor Tool.
Meanwhile, oil prices recovered after slumping overnight as markets turned their attention to U.S. supply data due out later Wednesday.
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