The Impact of Trump’s Victory on Financial Markets

Donald Trump’s recent victory in the US presidential elections has caused an immediate reaction in financial markets. Investors expect his policies, similar to those of his first term, to stimulate American economic growth. Among the expected measures are tax cuts, deregulation and the imposition of tariffs, elements that could positively influence the profits of companies, especially American ones, and inflation.

Wall Street’s Reaction

Wall Street opened positively after Trump’s victory. Major indices showed significant performances:

• Dow Jones: +3.11%, reaching 43,528.52 points
• Nasdaq: +1.81%, reaching 18,774.79 points
• S&P 500: +1.95%, closing at 5,894.11 points Additionally, Trump’s social media company saw a significant increase in its stock: Trump Media & Technology Company stocks rose 25%. Tesla’s run was no exception; shares of the car company rose 14.38%, in response to news of the president’s victory.

Situation in European Markets and Trends in Raw Materials

European markets showed mixed reactions. After an initial boost, some indices struggled to maintain their rise:

• Milano (Ftse Mib): +0,15%
• London: +0.97%
• Paris: +0.95%
• Frankfurt: +0.64%
• Madrid suffered a decline of 1.95%. The spread between BTPs and German Bunds rose to 128.4 points, with the yield on BTPs rising to 3.69%, while that on Bunds fell. In the commodities market, crude oil fell 1.81%, with Wti at $70.66 per barrel and Brent at $74.18 per barrel. Gas also showed a significant decline of 3.15%, while gold lost 0.83%.

Future Prospects

With the new administration nearing its inauguration, investors will be closely monitoring how Trump’s economic policies will affect not only the United States but also the global economy. The reaction of European markets could reflect growing caution about the consequences of American policy choices on international markets. Volatility could remain high as investors try to anticipate future developments in fiscal and trade policies.