Wall Street Rallies Ahead of Trump’s New Term: Stocks Rise on Economic Hopes

Wall Street is experiencing a notable recovery ahead of Trump’s inauguration,
driven by hopes of supportive economic policies and market recovery.

Content

Stock Performance
Future Expectations
Supportive Policies

Stock Performance

Strong Performance Led by Tech Stocks
The U.S. markets had a positive week, with the S&P 500 index recording its best weekly performance since November.
This was fueled by the rise of major tech stocks like Tesla and Nvidia.
Intel Corp’s stock also surged 9.2% following reports of a potential acquisition,
adding further positive momentum to the indices.

Optimism was further bolstered by discussions between President-elect Donald Trump and Chinese President Xi Jinping on trade,
TikTok, and fentanyl, key topics that could shape economic relations between the two largest economies.
Meanwhile, U.S. 10-year Treasury yields dropped by 15 basis points, providing additional market support.

Future Expectations

Promising Outlook for Stocks Post-Inauguration
As Donald Trump prepares to take office as President of the United States,
investors are hopeful for policies that support economic growth, such as tax cuts and increased tariffs.
Despite challenges faced by stocks last month due to the Federal Reserve’s hawkish stance,
recent inflation data has revived expectations for interest rate cuts.

Historical market performance suggests potential gains following inauguration.
According to Jefferies’ analysis, the S&P 500 typically experiences an average rise of 3.7% in the three months following the event,
with gains reaching up to 9.5% over 12 months.

Supportive Policies

Positive Outlook Under Trump’s Leadership
Trump’s protectionist policies are expected to shield U.S. stocks from major declines, according to Bank of America strategists.
Analysts predict that earnings growth of 9% this year could push the S&P 500 to record highs of 6,600 points by the year’s end.

Technology, utilities, financials, and consumer services sectors are seen as the most attractive for investors under these favorable conditions. Despite high valuations for U.S. equities,
the expansion of earnings momentum and supportive policies may sustain strong market performance.

Wall Street Rallies Ahead of Trump’s New Term

Wall Street Rallies Ahead of Trump&#8217;s New Term

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Wall Street Rallies Ahead of Trump’s New Term