Markets remain optimistic following Trump’s victory, with investors anticipating a positive impact on the economy from his plans for tax cuts and deregulation. On the other hand, the Federal Reserve’s decision to cut rates takes a backseat to the expectation of more restrictive policies under its possible mandate.
Investors now see rate cuts as increasingly unlikely next year.
NYSE
Futures on Wall Street are trading near all-time highs on Thursday, anticipating a return to Donald Trump’s rally as investors analyze the next president’s likely impact on markets and await the Federal Reserve’s policy decision.
Dow Jones Industrial Average futures (YM=F) rose 0.1%, following a 1,500-point gain that marked the blue-chip index’s best day since 2022. S&P 500 futures (ES=F) also rose 0.1%, while contracts on the technology-focused Nasdaq 100 (NQ=F) rose about 0.2%.
It should be remembered that the day before, the Dow Jones industrial average closed at +1,500 points, recording a record close and its best day since 2022.
Wall Street: what the market analyzes
Optimism persists following Donald Trump’s presidential victory, which sent all three major stock indexes to new all-time highs on Wednesday.
His plans for corporate tax cuts and deregulation have fueled optimism about a boost to the economy that will benefit stocks. However, some on Wall Street see signs of a relief rally, as Trump’s decisive victory also allayed concerns about a disputed election. They suggest gains in stocks could slow as the euphoria dissipates.
wall street markets NYSE.jpg
NYSE
The Fed’s interest rate decision, normally a dominant event for markets, has taken a backseat due to the election fallout.
On the one hand, investors see a 25 basis point cut almost certain at the end of policymakers’ two-day meeting on Thursday. Instead, the focus is on what Chairman Jerome Powell could reveal about the future direction of policy, especially given that Trump’s return could mean rates stay high for longer.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
