All the available metrics chorus U.S. markets surge after the first day of Trump’s second round in office. This market outlook indicates that the President has momentarily shelved his tariff threats. President Trump signed a series of executive orders after resuming the Oval Office. However, none of these orders seem to have a direct or marked effect on the stock market.
On the contrary, U.S. stock prices rise to reiterate investor confidence. The President is not yet out to unleash aggressive action on U.S. trade partners. Various market indices showed that financial investments are still performing well.
For example, the Nasdaq Composite increased by 0.6%, the S&P 500 by 0.9%, and the Dow Jones by 1.5%. However, financial analysts are itching to know President Trump’s specific intentions concerning his statements about external tariffs.
Early Bird Policies From Trump 2.0
While signing multiple executive orders on Monday, President Trump mentioned that the US would initiate a 25% tax on Canada and Mexico starting February 1.
Subsequently, journalists attending the ceremony questioned the President about potential sanctions on China. In response, Trump said that the U.S. still has tariffs on China, which were imposed during his first term in office and are still in force. However, he suggested that his administration may levy more tariffs if Beijing refuses to approve the deal that cedes TikTok to the United States.
The Supreme Court recently passed a ruling banning the operation of TikTok in the U.S. The ruling pointed out that TikTok possesses enough technical strength to harvest Americans’ personal data. U.S. diplomats say this is a national security threat, as TikTok is currently licensed in China.
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The U.S. Economy Reacted to the Inauguration of a New Government in Various Ways
Judging by the financial news of the U.S. market surge after Trump’s inauguration, finance experts suggest that his policy announcements were not as harsh as many anticipated. For example, Alec Phillips, a Goldman Sachs affiliate political economist, said something similar: “President Trump’s Inauguration Day policy announcements on tariffs were more benign than expected.”
Another finance expert, Jamie Cox of Harris Financial Group, said the stock market’s steady rise “seems to have overcome its tariff tantrum.” Solitta Marcelli is the chief investment officer at the American bloc of UBS Global Wealth Management, and she also had roughly similar comments. She expects the U.S. to experience marked economic growth as businesses take on wings in 2025. Indeed, Marcelli even predicts that the S&P 500, which has fluctuated between 5,800 and 6,100 in the past month, will hit 6,600 by December.
On the contrary, the dollar did not fare well after Trump’s second-term inauguration. Financial news reported that the currency rose after the Trump tariff announcements but dipped briefly on Tuesday. WTI Crude oil also dropped by 1.7% after the President signed an executive order that backed the U.S. out of the Paris Agreement and revived the drilling of crude on U.S. territories.
US Markets Surge at News of StarGate Inception
It was a bitter-sweet time for Wall Street investors, as yields on Treasury notes declined while equity gains increased. For example, the Russell 2000 index climbed by 1.85%.
Investor confidence and poise at the news of a White House invite to Larry Page saw his company’s stock (ORCL) jump by 7%. Besides Page, the CEOs of Softbank and OpenAI were invited for the unveiling of an AI project.
Sam Stovall is the chief investment strategist at CFRA Research, and he recently wrote something insightful. He pointed out that the S&P 500 had its 11th-best streak in the past 80 years between the period of Trump’s reelection and inauguration day.
According to Stovall, the bull market, equity gains, and increased trading volume are all indicators of oncoming economic growth. Wall Street analysts are equally optimistic that the drop in market volatility signals good times ahead for the U.S. economy.
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Analysts Anticipate Further Cryptocurrency and US Markets Surge
Major market players and investors are aware that Trump is an astute businessman, and his policies are likely to be such that they lead to increased company earnings and a bull market. Naturally, hopes are high that trading volume will keep increasing throughout the year. However, analysts are waiting to see how the economic year plays out for the Trump administration. It is obvious that Trump still has a lot of policy decisions in his kitty. So, Clark Geranen of CalBay Investments is looking out for market volatility that may play out in response to the yet-to-come policy changes.
Title: Pure Mathematics The price of major cryptocurrencies like Bitcoin dropped after Trump’s inauguration. Unlike company earnings, the value of digital assets doesn’t seem to have been much affected by the change of government. Indeed, even the President and his first lady, Melania Trump, reportedly launched meme coins over the weekend. That’s a probable precursor to the Trump administration’s cozying up to digital currencies.
Celebrating the U.S. market surge trailing Trump’s inauguration may be too early. Year-on-year comparisons will better measure how well the stock market and the entire economy held up under Trump.