President-elect Donald Trump’s pro-business policies are poised to send the stock market soaring to unprecedented heights, according to Jeremy Siegel, a finance professor at the prestigious Wharton School of the University of Pennsylvania.
Siegel, a prominent figure in the financial world, shared his bullish outlook on CNBC’s “Squawk Box,” predicting a significant impact from Trump’s policies. “President-elect Trump is the most pro-stock market president we have had in our history,” Siegel declared. He went on to explain, “He measured his success in his first term by how well the stock market did. You know, it seems to me very unlikely he’s going to implement policies that are going to be bad for the stock market.”
The market has already begun to respond to Trump’s election victory, experiencing a surge as investors anticipate the benefits of his promised tax cuts and deregulation. This optimistic sentiment is driving growth and benefiting risk assets, leading to substantial gains across the board.
The S&P 500, tracked by the SPDR S&P 500 ETF SPY, saw its best week since November 2023, rising by 4.66% and crossing the 6,000 mark for the first time. The Dow Jones Industrial Average, represented by the SPDR Dow Jones Industrial Average ETF Trust DIA, also reached a new milestone, surpassing 44,000 post-election.
Individual stocks, like Tesla Inc TSLA and major banks such as JPMorgan Chase & Co JPM and Wells Fargo & Co WFC, have also experienced significant gains following Trump’s victory. Adding to the bullish momentum, Bitcoin BTC/USD has continued to hit record highs as traders anticipate looser regulations under Trump’s leadership.
As the era of the “Trump trade” unfolds, the market’s focus shifts towards the potential impacts of Trump’s policy priorities on investments. His promises of lower corporate taxes and deregulation are seen as positive catalysts for the economy and stock prices. However, other pledges, like immigration clampdowns and high tariffs, are viewed as potential economic obstacles that could pose challenges in the future.
The anticipation surrounding Trump’s economic agenda has created a dynamic environment for investors, with the potential for both substantial gains and potential risks. As the market continues to react to the unfolding political and economic landscape, it will be crucial to monitor the impact of Trump’s policies on the stock market and the broader economy.
