Stocks and Bitcoin rise after Trump victory. The same goes for inflation worries if the Dow Jones goes to 1,300

NEW YORK (AP) — The U.S. stock market, Elon Musk's Teslabanks and Bitcoin are all rising on Wednesday as investors bet on them Donald Trump's return to the White House will mean for the economy and World. The losers include the market: solar energy companies and possibly everyone who is worried higher inflation.

The S&P 500 rose 2% in midday trading and is on track to surpass its peak All-time high reached last month. The Dow Jones Industrial Average rose 1,304 points, or 3.1%, as of 11:30 a.m. Eastern time, while the Nasdaq Composite gained 2.3%.

The US stock market has tended to increase in the past regardless of which party wins in the White House, with Democrats making larger gains on average since 1945. But Republican control could lead to big shifts in winners and losers beneath the surface, and investors are increasing bets previously placed on what those are higher tariffs, lower tax rates and less regulation that Trump's favors will mean.

“Markets are trying to figure out what happens next, but for now the market is pricing in a higher growth and inflation outlook,” said Peter Esho of Esho Capital.

Of course, how much change Trump can effect will likely depend on whether his fellow Republicans win control of Congress, and that is the case still to be determined. That could create room for setbacks in some of Wednesday's big, knee-jerk moves.

Nevertheless, after Trump's dramatic victory, the market is split between clear winners and losers. Including:

BANK STOCKS, increased

Bank stocks led the market higher, partly on hopes that a stronger economy would lead to more customers taking out loans and paying them back with interest. They also rallied on hopes of looser regulation from a Republican White House, which could lead to more mergers and acquisitions in which investment banks could earn fees. JPMorgan Chase rose 9.2%, and financial stocks in the S&P 500 posted by far the largest gain among the index's 11 sectors.

CRYPTO, above

Trump has promised to make the country “the” country Cryptocapital of the planet” and create a “strategic reserve” of Bitcoin. According to Coindesk, Bitcoin price hit an all-time high of over $75,000 and recently rose 6.5% to around $74,400. Companies in the crypto industry also saw a jump, including the 22.7% jump on trading platform Coinbase.

TESLA, above

Musk has become a close ally of Trump and has endorsed the former president's candidacy. While Trump could ultimately hurt the electric vehicle industry broadly by limiting government subsidies, analysts say Tesla could gain some advantage by already being such a big player in the industry. Tesla rose 13.2%, while rival Rivian Automotive fell 9.9%.

TRUMP MEDIA & TECHNOLOGY GROUP, upwards

The Company behind Trumps Truth Social The platform rose 6.1% after previously rising nearly 35%. The company regularly relies more on Trump's popularity than his profit prospects. His promotion came even after his submission unaudited financial documents Regulators said late Tuesday that the company lost $19.2 million in its most recent quarter and that its sales weakened compared with a year ago.

PRIVATE PRISON OPERATORS, upwards

A Trump-led Washington could push for stricter enforcement of the country's borders, which could mean more business for companies that work with U.S. Immigration and Customs Enforcement (ICE). GEO Group, which operates ICE processing centers, rose 35.5%.

Inventories of smaller companies are increasing

Trump's “America First” policy could help companies that focus on customers in the United States rather than large multinational corporations that could suffer from increased tariffs and protectionism. The Russell 2000 index of smaller stocks considered more domestically focused than the large stocks in the S&P 500 rose 4.5%. That was more than double the gain of the S&P 500.

Government bond prices fell

Investors expect Trump's policies to potentially lead to stronger economic growth, helping to lower Treasury bond prices and boost their yields. Trump tax cuts could also cause the U.S. government's deficit to rise further, increasing its borrowing needs and increasing yields even further. The yield on the 10-year Treasury note rose to 4.45% from 4.29% late Tuesday, marking a major move for the bond market. It has increased significantly compared to August when it was below 4%.

Concerns about inflation are increasing

Investors also expect Trump's policies are likely to increase future inflation, particularly tariffs, which can weigh on U.S. household bills.

“Trump keeps telling people openly that he will increase tariffs not just on China, but on all trading partners,” said Andrzej Skiba, head of BlueBay US fixed income at RBC Global Asset Management. “We are talking about 10% tariffs for all global partners. This is a big deal because it could increase inflation by 1%. If you increase inflation numbers by 1% next year, we should say goodbye to rate cuts.”

A decline in immigration could also prompt companies to raise wages for workers more quickly, which in turn could put more upward pressure on inflation.

EXPECTATIONS OF INTEREST INTEREST FUTURES, unclear

Much of Wall Street's record run this year was based on expectations impending interest rate cuts by the Federal Reservenow that inflation seems to be on the way back to its 2% target. Loose interest rates help stimulate the economy, but can also increase inflation.

The Fed will announce its latest interest rate decision on Thursday, with a cut still expected, according to data from CME Group. However, traders are already scaling back their forecasts of how many interest rate cuts the Fed will make by the middle of next year.

FOREIGN CURRENCIES, decreased compared to the dollar

Trump has promised to sharply increase tariffs on imports from China, Mexico and other countries, stoking fears of trade wars and disruption to the global economy. A measure of the U.S. dollar's value against several major currencies rose 1.6%, meaning those other currencies fell.

The euro fell 1.5%, the South Korean won lost 1.2% and the Mexican peso slipped slightly further against the dollar.

RENEWABLE ENERGY STOCKS, declining

Trump is a fan of fossil fuels and promotes the development of oil and natural gas. His victory led to a significant decline in solar stocks, including a 12.6% decline for First Solar and an 18.7% decline for Enphase Energy.

The only stock with a larger loss in the S&P 500 was Super Micro Computer, whose sales for the latest quarter may be below its previous forecasts. The stock fell 24.4%.

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AP writers Zimo Zhong, Elaine Kurtenbah, Kirstin Grieshaber and Kelvin Chan contributed to this report.