The impact of Trump’s victory on financial markets

The recent election of Donald Trump as US President has sparked immediate reactions in financial markets, with strong optimism regarding his economic policies. Investors expect Trump’s strategies, similar to those of his first term, to stimulate economic growth and increase corporate profits, especially for US companies.

Wall Street in ascesa

Wall Street opened after Trump’s victory with a roaring rise in major indices.

• The Dow Jones increased by 3.11%, reaching 43,528.52 points.
• The Nasdaq rose 1.81% to 18,774.79 points.
• The S&P 500 gained 1.95%, reaching 5,894.11 points. Additionally, Trump’s social media launch, Truth Social, saw a significant increase in its stock, with Trump Media & Technology Company up 25%.

Reactions in Europe and on the bond market

Despite the optimism on Wall Street, European markets felt the shock wave of Trump’s victory. Stocks fell rapidly:

• Milan recorded a decrease of 2.5%.
• Madrid saw a decline of 2.6%. These changes were accompanied by a widening of the spread between BTPs and Bunds above 132 points, a sign of growing concern among investors. In the Milan stock market, only a few stocks managed to resist the general sales:
• Tenaris rose by 5.4%.
• Diasorin gained 5.3%. On the contrary, the Inwit stock dropped dramatically by 6.8%, while Campari and several banks suffered significant losses: Unicredit (-3.8%), Mps (-4.39%) and Banco Bpm (-3.9%).

A future perspective

The market reaction to Trump’s victory underscores the importance of economic policies in shaping investor expectations. With proposals for tax cuts, deregulation, and tariffs, the new administration could have a lasting impact on the U.S. and global economy. While analysts are closely watching future developments, it remains to be seen how these policies will translate into concrete outcomes for the market and the economy as a whole.