Following the historic victory of Donald Trump in the 2024 US presidential elections, investors in Washington DC and across the United States accumulated stocks and betted on the dollar. The benchmark S&P 500 index surged by 1.70 percent to reach 5,881.15 points, marking a 24 percent rise so far this year. The stock markets rose steadily as the votes were counted, with the Russell 2000 index tracking smaller companies most exposed to the US economy jumping by about 4 percent.
In his speech following the election results, Trump indicated that his administration would focus on raising tariffs and reducing taxes to bolster the American economy. This announcement has created a sense of optimism among investors, who are now eagerly awaiting the US Federal Reserve monetary policy meeting scheduled for Thursday. The level of rate cut, if any, will be closely monitored by investors globally, following the steep 50 basis points interest cut announced by the Fed in its September meeting.
This departure from the previous stance of holding interest rates steady in eight straight meetings since July 2023 signals a shift in the Fed’s policy. During the COVID-19 pandemic, interest rates had been near zero, but the Fed’s decision to cut rates again suggests a proactive approach to supporting the economy. Global investors are expecting a rate cut from the US central bank, but the focus will be on the quantum of the cut and its potential impact on the markets.
In the wake of Trump’s re-election, the markets are experiencing a sense of renewed confidence and optimism. The dollar has strengthened as investors bet on the economic policies of the Trump administration. With a focus on raising tariffs and reducing taxes, Trump’s economic agenda is expected to benefit US businesses and markets, driving further growth and expansion.
As the US Federal Reserve prepares for its monetary policy meeting, investors are eager to see how the central bank will respond to the current economic conditions. The rate cut announced in September was a bold move that signaled the Fed’s commitment to supporting the economy. With expectations of another rate cut, investors are keeping a close eye on the Fed’s decision and its potential impact on the markets.
Overall, the victory of Donald Trump in the 2024 US presidential elections has had a significant impact on the markets. Investors in Washington DC and beyond are optimistic about the future prospects of the US economy, as reflected in the surge in stock prices and bets on the dollar. With the Fed’s monetary policy meeting on the horizon, all eyes are on the central bank to see how it will respond to the evolving economic landscape and what implications it might have for investors worldwide.
