U.S. stocks maintained solid gains Wednesday afternoon as Wall Street weighed a surprising victory by Republican Donald Trump in the presidential election.
The S&P 500 rose 1.3%, the Dow Jones Industrial Average gained 1.6% and the Nasdaq rose 1.1%.
European stocks traded higher following losses earlier in the trading session.
Trump, who will serve as the 45th president of the United States, surprisingly won New Hampshire, North Carolina, Florida, and Wisconsin, key battleground states both candidates needed to secure to win the election.
Prior to the election, markets were factoring in a win by Democratic nominee Hillary Clinton, who said in her concession speech Wednesday that "we must accept this result and then look to the future. Donald Trump is going to be our president. We owe him an open mind and the chance to lead." President Obama spoke today, saying he and his team will work with Trump on a smooth transition of power.
The election saw Senate and House Republicans maintain their majorities in Congress.
"We think the stock market selloff will be short lived," Deutsche Bank analysts wrote in a note prior to the markets opening on Wednesday. "This apparent Republican sweep is positive for the broad market and especially health care stocks. The only sector that might suffer from this election outcome is energy, as we think a greater U.S. oil supply outlook weighs on the oil price recovery."
The energy sector was higher Wednesday after seeing losses earlier in the session. The Energy Select Sector SPDR ETF (XLE) was up 2%. But SunPower (SPWR) fell 14.2% as investors believe Trump's focus on coal and oil is seen as a negative for the global energy company.