How Trump's Victory Changes Global Financial Markets

  • WorldScope
  • |
  • 06 November 2024
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The impact of Trump’s victory on financial markets

Donald Trump’s recent victory in the US presidential election has generated immediate reactions in financial markets, highlighting expectations about how his policies could affect the economy. Investors are confident that Trump’s economic strategies, similar to those of his first term, will lead to increased growth and corporate profits.

Wall Street Performance

Wall Street has performed very well in the immediate post-election period. In particular:

  • Dow Jones: +3.12%, reaching 43,535.19 points
  • Nasdaq: +2.12%, at 18,831.80 points
  • S&P 500: +1.87%, settling at 5,892.24 points Additionally, shares of Trump Media & Technology Company saw a surprising increase of 25%, reflecting investor interest in the social network founded by Trump.

Reactions in European markets

However, the effect of the victory was not limited to the United States. European markets showed signs of nervousness. The stock exchanges in Milan and Madrid suffered significant declines:

  • Milano: -2,5%
  • Madrid: -2,6% This decline led to a widening of the spread between BTPs and Bunds beyond 132 points, highlighting the growing tension among investors. Despite a negative context, some stocks have recorded positive performances. For example:
  • Tenaris: +5.4%
  • Diasorin: +5.3% On the contrary, stocks such as Inwit (-6.8%), Campari (-4.98%) and several Italian banks suffered heavy losses.

A look towards the future

Trump’s election could mark the beginning of a new economic era for the United States and have significant global repercussions. Investors will continue to closely monitor the Trump administration’s fiscal and trade policies to assess how they will affect not only the stock market but also global economic stability. With the political and economic landscape constantly evolving, the future remains uncertain but intriguing for market participants and economic analysts.

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