The recent US presidential election ended with Donald Trump who is the former Republican president, winning against Kamala Harris, the Democratic vice president. Trump has shared some ideas for new economic policies but he has not provided full details yet. It is too soon to know how these policies will affect the financial markets.
Trump’s victory also means that Republicans are back in charge of the U.S. Senate. As of now, we do not have all the results thus we cannot tell how many Republicans will be in charge. The House of Representatives which was just slightly controlled by Republicans before the election is still uncertain but it looks like Republicans could keep control. This would give Trump support from both the Senate and the House which make it easier for him to pass his plans which is similar to the way President Joe Biden did in his first two years.
The day after the election, the U.S. stock market saw big jumps. Major stock indexes like the Dow Jones, S&P 500 and NASDAQ, all hit new high points. Meanwhile, the bond market didn’t do well; the yield on 10-year U.S. Treasury bonds went up on the first trading day after the election.
Stocks have been doing well for the second year in a row. Following the election results, smaller companies, as well as the Energy and Financial sectors, saw particularly strong performances. Rob Haworth, an expert on investment strategy at U.S. Bank Asset Management, said that the effects of the election would be noticeable in specific industries with some benefiting from new policies and others facing challenges.
Trump’s win has already caused a noticeable impact on the markets, especially with stocks rising and bonds falling. Observers are closely watching how his upcoming policies could shape different sectors of the economy.
