US stock markets, including the S&P 500, Dow Jones, and Nasdaq, are getting ready for a boost this Monday with Donald Trump’s oath-taking ceremony happening on January 20. Many investors believe banks will do really well if Trump is president again. They expect a stronger economy which can mean more profits for banks, plus Trump’s policies might reduce rules that limit how banks operate.
Last Friday, the S&P 500 went up by 1%, marking its first positive week in three tries. The Dow Jones gained 334 points (about 0.8%), and the Nasdaq jumped 1.5%. Big technology companies, called the “Magnificent Seven,” led these gains. These companies include Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, Nvidia, and Tesla. Because they are so valuable, their stock price changes can significantly influence the overall market.
Recently, these tech giants faced some pressure as investors worried that their stock prices might be too high after doing so well for a long time. This concern grew when bond market yields rose, making investors uneasy about prices for various investments.
Experts on Wall Street are cautious due to the uncertain effects of Trump’s new economic policies, known as Trumponomics 2.0. His suggested policies could increase inflation and expectations of inflation because of possible high tariffs and tax cuts.
After Election Day, prices for all types of investments, from stocks to cryptocurrencies, have seen a lot of ups and downs. Some investors are hopeful for better profits and wider acceptance of cryptocurrencies, while others worry about a growing U.S. government debt and rising inflation.
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