Shares of Robinhood Markets Inc. ( HOOD ) surged close to 20% on Wednesday following Donald Trump's victory in the U.S. presidential election. Here’s what you need to know.

What To Know: Investors are expecting less regulation, including reduced oversight from agencies like the Consumer Financial Protection Bureau (CFPB) with Trump set to return to the White House, per CNBC.

"Trump is viewed as supporting lower corporate tax rates, deregulation, and industrial policies that favor domestic growth, all of which could provide more stimulus to the U.S. economy and benefit risk assets,” Marc Pinto, head of Americas equities at Janus Henderson, said in a new note.

The dollar index rose to its highest level since July, as investors believe Trump's proposed tariffs could strengthen the U.S. dollar. Meanwhile, the 10-year Treasury yield climbed to about 4.43%, driven by anticipation that Trump's potential tax cuts and spending plans could boost economic growth, but increase the fiscal deficit and lead to higher inflation.

Robinhood shares may have also gotten a boost on Wednesday thanks to strong overnight trading activity and election contracts data.

The company reported its largest overnight session since launching its 24-hour market, with trading volumes around 11 times higher than the company’s average overnight volume.

Check This Out: Robinhood Reports Record Overnight Trading Volume, 400 Million 2024 Election Contracts Traded

Overnight trading volumes included election contracts, which hit a milestone of 400 million contracts traded. More than 500,000 Robinhood users took part in election contract trading, according to the company.

Robinhood stock also traded higher alongside several crypto-related stocks on Wednesday. Bitcoin (CRYPTO: BTC) climbed to new all-time highs above $75,000, which sent crypto-linked stocks racing higher. Trump had positioned himself as a pro-crypto candidate.

Hood Price Action: Robinhood shares closed Wednesday up 19.6% at $29.86, according to Benzinga Pro.

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