How The Stock Market Is Responding To Trump’s Inauguration | Investing.com

When Donald Trump surprisingly won the election on November 8th, the stock market took a hit at first. However, since then, the market has shown impressive performance, with the Nasdaq yielding returns of 7% and the Dow Jones 8% since Election Day. Despite a recent slide with the Dow Jones dropping 100 points according to CNBC, investors are now starting to consider the potential economic challenges of the upcoming Trump administration.

While it’s too early to predict an impending economic downturn, the recent market slide indicates investor apprehension towards Trump’s policies as he gets ready to assume office. It’s essential to remember that the Trump administration might not necessarily be detrimental to the market in the long run, as Trump has proposed measures that could lead to positive outcomes. However, these market fluctuations suggest that investors are uncertain about the future under Trump’s leadership, causing some short-term volatility until the new administration’s policies take shape.

Surprisingly, the market saw a surge after Trump’s victory, despite initial predictions that a Clinton win would be more favorable for stocks. This unexpected surge is possibly due to investors considering the potential benefits of Trump’s proposed $1 trillion infrastructure plan to revamp American infrastructure. Additionally, potential economic boons such as regulatory reductions and tax cuts are capturing investor interest.

It’s important to note that the recent market boom can’t be solely attributed to Trump, as the U.S. economy has been performing well even before the election. Factors like rising wages and full employment have contributed to the market’s positive trajectory. As Trump’s inauguration nears, the market is experiencing some unease, similar to the market response following Brexit. This uncertainty poses a challenge for Trump as he steps into office, especially considering his tendency to introduce disruptive policies.

While concerns about economic instability may be driving the recent downturn, Trump’s impact on the market will be limited by the Republican-controlled Congress. While some short-term volatility is expected, it’s crucial to monitor the policies crafted by the government rather than responding impulsively to Trump’s statements or tweets. Analysts may predict doom or prosperity for the next four years under Trump, but ultimately, the market is expected to perform well in 2017 as investors navigate the changing landscape.