Wall Street still sees banks as some of the biggest beneficiaries from a second Trump administration. Besides a potentially stronger economy, which would boost profits for lending, investors expect another Trump term to mean less regulation on banks.
On Friday, S&P 500 climbed 1 per cent to clinch its first winning week in the last three. The Dow Jones Industrial Average rose 334 points, or 0.8 per cent, and the Nasdaq composite rallied 1.5 per cent.
The most forceful pushes upward came from Big Tech stocks. All the companies in what’s come to be known as the “ Magnificent Seven ” rose: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. Because they’re so massive in size, their movements carry more weight on the S&P 500 and other indexes than other stocks.
The Magnificent Seven have been under pressure recently because of criticism their stock prices may have shot too high after leading the market for so many years. Such worries grew after Treasury yields jumped in the bond market. Higher yields hurt prices for all kinds of investments, particularly those seen as the most expensive.
Wall Street experts pointed to the uncertainties created by “Trumponomics 2.0”. Policies pushed by President-elect Donald Trump could help push up inflation, or at least expectations for it, including widespread tariffs and tax cuts for an economy that’s already growing.Prices for all kinds of investments from stocks to cryptocurrencies have swung amid the uncertainty following an initial burst after Election Day. On one hand are hopes for stronger profits for companies and greater acceptance of crypto. On the other are worries about a potentially swelling U.S. government deficit and upward pressure on inflation.
FAQs
Q1. What are US Stock Market indexes?
A1. US Stock Market indexes are S&P 500, Dow Jones, and Nasdaq.
Q2. When is Donald Trump oath ceremony date?
A2. Donald Trump oath ceremony date is on January 20.
Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.
