THE S&P500 reached a record high yesterday (November 6) following the results of the US elections. The index ended up 2.53% to close at 5,929 points. Even though the index performed well, some individuals American artists did even better. Depending on what type of stocks have rallied, I think I can learn something about what might happen from here.

Redemption potential

The best performing stock yesterday was Discover financial services. The stock price jumped 20%. This also concerns Capital onewhich jumped 15%.

A $35 billion deal is currently in play, with Capital One looking to take over Discover. This would create the nation’s largest credit card issuer by loan volume. However, it is still awaiting government approval. With Trump’s victory yesterday, we are much more optimistic that he will soon give the green light for this to be done. Trump is seen as pro-business and has made it a key policy pledge to revive the economy.

I think this is a really interesting example of how stocks can move based on something like the outcome of an election. He points out that politics does influence the stock market, including in specific situations like this.

Of course, nothing concrete has been done, so yesterday’s increase in these two values ​​is purely speculative. But the fact that Discover was the biggest winner shows the importance investors place on what just happened.

A Retail Investing Favorite Is Back

One of the other top performers yesterday was Tesla (NASDAQ:TSLA). I’m seriously considering buying this stock and really should have bought it earlier this summer when the stock tanked!

Over the past year, Tesla shares are up 30%, with 15% of that movement occurring yesterday. One of the key factors here was the fact that Elon Musk became a strong supporter of Trump during his election campaign. So I have the impression that some speculative traders were using Tesla’s stock to express the opinion that Trump was going to win. Likewise, if he had lost, I think the stock would have lost value.

I don’t invest in stocks for this kind of speculation. But for the future, I think Tesla could do well. Since Musk is close to the president, I think he could help influence policy regarding the promotion of electric vehicles. He could also push for more government aid, favorable terms on subsidies and other factors that should ultimately benefit Tesla.

Tesla also stands to gain from some of Trump’s policies, including lower taxes. With some manufacturing plants in the United States, it could enjoy a greater competitive advantage over its peers abroad, especially if other companies are hit with tariffs.

As a risk, Tesla stock has a price/earnings ratio ratio of 128. This is very high and could indicate that the stock is overvalued.