Trump Wins and Markets Explode: What to Expect Now
The impact of Trump’s victory on financial markets Donald Trump’s recent victory in the US presidential election has prompted an immediate reaction in financial markets.
The impact of Trump’s victory on financial markets
Donald Trump’s recent victory in the US presidential elections has generated immediate reactions in financial markets. Investors seem optimistic about the economic policies that the president could implement, which are expected to be a continuation of those of his first term. In particular, tax cuts, deregulation and tariffs could give new impetus to economic growth and corporate profits, also influencing the trend of inflation.
Wall Street Reactions
Wall Street reacted positively to the election results, marking new historical records. The Dow Jones increased by 3.12%, closing at 43,535.19 points. The Nasdaq also rose by 2.12%, reaching 18,831.80 points, while the S&P 500 recorded an advance of 1.87%, reaching 5,892.24 points.
Investors appear to perceive Trump’s victory as an opportunity to capitalize on business-friendly policies. Additionally, Trump’s social media launch, Truth Social, saw its stock soar with a 25% increase for Trump Media & Technology Company.
The reaction of the European markets
After the positive opening of Wall Street, European markets have suffered a rapid decline. Milan and Madrid have recorded significant drops: -2.5% and -2.6% respectively. The tension is also evident in government bonds, with the spread between BTPs and Bunds that has widened beyond 132 points. Despite the general sell-off, some stocks stood out: Tenaris gained 5.4%, while Diasorin saw an increase of 5.3%. However, Inwit suffered a decline of 6.8%, with losses also for Campari (-4.98%) and several Italian banks such as Unicredit (-3.8%), Mps (-4.39%) and Banco Bpm (-3.9%).
Future prospects
As Trump enters a new presidential term, analysts will be closely watching how his policies will affect not only the United States but also global markets. Initial optimism could be challenged by broader economic factors and the reactions of international investors. The economic choices that will be made in the coming months will be crucial in determining the future direction of global financial markets.
