Trump’s return fuels market surge and uncertainty
Trump’s planned policies have investors worried about the country’s economy moving forward.
Multiple industries globally saw gains in their market performance following Donald Trump’s election win. However, so close to his inauguration, industry leads are expressing their worries over the risks involved with his return, citing that his administration’s policy changes may affect the US economy.
Some markets already see their stocks plummeting, evoking more uncertainty about their future.
Industry leads are concerned over Trump’s planned tariffs and immigration policies
The Russell 2000 index soared by almost 6% the day after Trump’s win and continued to rise for more than two weeks before giving back much of that gain after Nov. 25.
Bank stocks experienced the same rise-and-fall frenzy. For starters, the KBW Bank Index jumped by nearly 14% from Nov. 5 to Nov. 25; however, its price rally quickly faltered. Similarly, the S&P 500 Energy Index rose by 6.5% from Election Day through Nov. 22, but it dwindled by over 3.2%.
Most of these markets began slumping after concerns of oversupply, tariffs, and economic growth started rising.
Trump’s proposed tariffs are still the biggest fear for multiple industry leads. Some have even predicted that his tariff plans could contribute to long, unpredictable wars even worse than those experienced during his first presidency.
Trump’s vision for new immigration policies is also scaring some investors. Some believe his action could impact the country’s economy and aggravate geopolitical tensions. Donald Trump has already started to take shots at state allies like Canada, Mexico, and Europe, increasing investors’ concerns.
Citigroup’s chief US economist, Andrew Hollenhorst, even remarked:
Forecast is the polite way to say guess, but we have to make assumptions about these policies because they will affect the economic outlook. Andrew Hollenhorst
The crypto community is heavily anticipating Trump to deliver on his promises
The crypto community waits for Trump to help institute pro-crypto policies once he takes office. During his campaign, he painted himself as the crypto president and even proposed the establishment of a national Bitcoin reserve, which worked well to pull pro-crypto supporters.
According to sources, Donald Trump plans to issue a flurry of executive orders favoring the crypto industry, making investors optimistic about the industry’s future.
Bitcoin reached record prices after Trump’s win, gaining over 50% in just a few weeks. Now, Bitcoin is trading at $104,956, a price rally partially contributed by the new token the president-elect launched. However, crypto analysts and investors are bracing themselves for further volatility in the markets.
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