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Market Reactions to Trump's Election
Analysis of market reactions to the Trump election, including equity market movements, bond yields, currency fluctuations, and the impact of House control.
English
Canada
EconomyUs PoliticsElectionMarketsStocksBonds
ScotiabankWells FargoWolfe ResearchThe Globe And MailFed
Scott BarlowHugo Ste-MarieChristopher HarveyTobin MarcusDonald Trump
- How did the election results impact bond yields?
- The victory led to increased bond yields, particularly at the long end of the curve, driven by concerns about rising deficits and sustained inflation.
- What was the effect on the US dollar and other currencies?
- The US dollar strengthened against major currencies, including the Canadian dollar, as the interest rate differential between the Fed and the BoC is expected to widen.
- What was the immediate market reaction to Trump's election win?
- Following Trump's election win, US equities rallied significantly, with small caps surging. Nasdaq futures saw less growth, potentially due to a stronger dollar and a shift towards lagging sectors.
- What is Wells Fargo's prediction for the year-end equity market?
- Christopher Harvey of Wells Fargo anticipates a year-end equity market rally, raising their 2024 SPX target to 5830 based on projected earnings and economic factors.
- Why is control of the House of Representatives important for the markets?
- Control of the House of Representatives is crucial for fiscal policy, impacting areas like tax cuts and healthcare. A Republican win is expected to affect various sectors differently.