The T-REX 2X Long MSTR Daily Target ETF (MSTU) soared 17.96% on Wednesday, November 7, 2024, amid a massive stock market rally following the re-election of Republican Donald Trump as U.S. President.
MSTU, a leveraged ETF that aims to provide twice the daily returns of the MicroStrategy (MSTR) stock, benefited from investors' optimism about potential pro-business policies under a second Trump administration. The broader market also saw significant gains, with the Dow Jones Industrial Average posting its best post-Election Day performance by jumping 3.5%, while the Nasdaq Composite and S&P 500 rose 2.9% and 2.5% respectively.
As a leveraged fund tracking MicroStrategy, which is seen as a cryptocurrency proxy due to its large Bitcoin holdings, MSTU's surge reflects investors' expectations of favorable conditions for risk assets like stocks and cryptocurrencies under the new administration.