S&P 500 And Nasdaq Aim For Gains Following Trump’s Reelection

What’s going on here?

The S&P 500 and Nasdaq are set for more gains after a surprising rally fueled by Donald Trump’s reelection, with keen attention on the Federal Reserve’s upcoming rate decision.

What does this mean?

Trump’s win has given markets a boost, pushing the S&P 500 and Nasdaq to new highs thanks to expected tax cuts and deregulation. S&P 500 futures climbed 0.17%, and Nasdaq futures are up 0.37%. Meanwhile, the Federal Reserve is under pressure with a likely 25-basis-point rate cut as it juggles Trump’s policies and inflation worries. This political shift and possible monetary easing have lifted investor spirits, marking record single-day rises for major indexes since November 2022 for the Dow and S&P 500, and February for the Nasdaq. The jobs market looks steady, with jobless claims at 221,000, fitting a strong economic narrative.

Why should I care?

For markets: Volatility takes a backseat as confidence grows.

With the VIX index at a six-week low, market anxiety is easing, showing rising investor confidence despite fast market shifts. This calm rides on strong gains in tech and fashion stocks, like Qualcomm’s 5.6% rise on good forecasts and Ralph Lauren’s 8.2% jump after an upbeat sales outlook, suggesting wise investments might keep thriving under Trump’s rule.

The bigger picture: Trump’s policies could reshape economic trends.

With a Congress potentially supportive of Trump’s policies, big deregulation and tax cuts could come into play, affecting broader market trends. These moves might promote corporate growth and lessen regulatory strain, matching investors’ optimistic views. As the Federal Reserve faces these new landscapes, coming monetary policy choices will be key to sustaining economic steadiness amid foreseeable changes.

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Originally Posted November 6, 2024 – S&P 500 And Nasdaq Aim For Gains Following Trump’s Reelection