As the Trump era winds down, investors are closely watching how President-elect Donald Trump’s policy priorities will impact the market. While some of his campaign promises, like tax cuts and deregulation, are viewed favorably, others, like immigration restrictions and tariffs, could pose economic challenges. The article explores the complexities of navigating this uncertain landscape and the importance of understanding Trump’s true intentions.
Global markets rallied on Wednesday after Donald Trump’s victory in the 2024 US presidential election, with the Dow, S&P 500, and Nasdaq all hitting record highs. Investors were optimistic about potential tax cuts, deregulation, and Trump’s economic policies. However, rising Treasury yields and concerns about inflation and the US deficit tempered some of the enthusiasm.
This week saw a whirlwind of news, with Trump’s latest comments, market trends, and crypto developments dominating headlines. From Robert Kennedy Jr. taking the stage to potential disruptions in the tech and energy sectors, read on for a comprehensive recap.
U.S. markets closed mixed on Tuesday, with investors focusing on rising Treasury yields and the upcoming earnings season. The Nasdaq gained slightly, while the Dow and S&P 500 dipped. Treasury yields reached their highest point since July, indicating market uncertainty about the Federal Reserve’s policy trajectory. Asian markets saw mixed performance on Wednesday, with Japan’s Nikkei 225 closing lower and Australia’s S&P/ASX 200 rising. European markets were trading down early Wednesday morning. Commodity prices also saw fluctuations, with oil prices falling due to rising U.S. crude inventories, while gold prices surged to record highs driven by investor demand amid geopolitical tensions.
This week saw a mix of political drama, market movements, tech advancements, and international developments. Vice President Kamala Harris leads in polls for the 2024 election, but independent voters remain a concern. Elon Musk’s influence on the Trump family grows as his granddaughter poses with a Tesla Cybertruck. Meanwhile, the stock market sees gains despite a potential slowdown, and the tech sector continues to innovate with new products and acquisitions.
US markets closed higher on Tuesday, driven by tech stocks and easing Treasury yields. Asian markets were mixed, with China and Hong Kong experiencing sharp losses due to profit-taking and a lack of stimulus. European markets opened slightly higher, while oil prices rebounded despite weak demand expectations.
Cryptocurrency markets are experiencing a downturn as China’s stimulus measures fell short of expectations. Bitcoin dipped below $63,000, while other major cryptos also saw losses. However, positive developments include FTX’s proposed $16.5 billion repayment plan for creditors and Fidelity’s continued investment in Bitcoin. The market is closely watching Bitcoin’s price action, with some analysts predicting a significant move in the near future.
Chinese markets experienced a sharp selloff overnight, with the Hang Seng Index in Hong Kong plummeting more than 9% due to disappointment over the lack of aggressive fiscal stimulus announcements from Beijing. Investors had hoped for bold measures to support the economy, but the only concrete plans announced were a front-loaded 100 billion yuan ($14.1 billion) budget from 2025 and another 100 billion yuan for construction projects. The selloff extended to offshore Chinese equities and U.S.-listed Chinese stocks.
The Federal Reserve’s recent 50 basis point rate cut has sent ripples through the financial world. Experts weigh in on the implications for investors, markets, and the U.S. economy, highlighting potential benefits for specific sectors like real estate, small caps, and emerging markets. The cut is viewed as a shift in monetary policy, with a focus on stabilizing economic growth and preventing significant damage to the labor market.
The Federal Reserve cut interest rates by 0.5% on Wednesday, marking the beginning of a highly anticipated easing cycle. This move sent markets soaring, with the S&P 500 hitting all-time highs. The decision also triggered volatility in crypto markets and gold, which hit all-time highs following the announcement.
