SPX: Trend is your friend
The US Presidential elections set the stage for an upside for US equity markets, while Feds another rate cut by 25 bps nailed the upside. The hype was back on equity markets, and new all time highest levels followed. As analysts from Barclays explained : “ Equities are eager to price in Trump's domestic growth policies and hopes for easier regulation relative to the Biden administration”. The S&P 500 passed the 6K mark, reaching the highest ever level at 6.010, at Friday's trading session.
Certainly, the star company of the week was Tesla, as Elon Musk was a strong supporter of the Presidential candidate Donald Trump. The company was traded higher by some 30% for the week. Also, all companies related to President elected Trump significantly gained. Also, as President elect Trump was quite supportive to the crypto industry during the campaign, his election pushed the crypto market strongly to the upside, and also companies within the crypto field. Coinbase gained some 47% for the week.
The markets will most certainly continue with the current trend in the coming period, but economists are noting that substantial risks which might be waiting just around the corner. Among the highest are noted, increasing US Government debt, which is not going to be supported by potential tax cuts, as well as tariffs on a foreign goods, which might bring back inflation to the higher grounds, and increase of Feds rates accordingly.
Certainly, the star company of the week was Tesla, as Elon Musk was a strong supporter of the Presidential candidate Donald Trump. The company was traded higher by some 30% for the week. Also, all companies related to President elected Trump significantly gained. Also, as President elect Trump was quite supportive to the crypto industry during the campaign, his election pushed the crypto market strongly to the upside, and also companies within the crypto field. Coinbase gained some 47% for the week.
The markets will most certainly continue with the current trend in the coming period, but economists are noting that substantial risks which might be waiting just around the corner. Among the highest are noted, increasing US Government debt, which is not going to be supported by potential tax cuts, as well as tariffs on a foreign goods, which might bring back inflation to the higher grounds, and increase of Feds rates accordingly.
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