Many economists have proliferated the claim that former President Donald Trump would harm the U.S. economy, but the stock market has surged following his election victory as Americans anticipate better business conditions.
Economists surveyed by both ABC News and The Wall Street Journal have suggested that Trump would worsen inflation through tariffs and deficit spending, harming the economy. Despite this, American investors and business leaders seem bullish about Trump’s return to the presidency, with the value of U.S. stocks rising more than $1.6 trillion on Wednesday — the fifth largest one-day stock market rally of all-time — and a variety of corporate bigwigs congratulating the president-elect. (RELATED: Stock Market Soars, US Dollar Surges Following Donald Trump Presidential Victory)
“Investors are celebrating,” Jack Ablin, chief investment officer at Cresset Capital in Chicago, told the WSJ.
Corporate outlets have also criticized the president-elect on the economy, with Bloomberg Opinion executive editor Robert Burgess writing in September that “[Trump] is recycling the ideas that didn’t work the first time around,” while CNN asserted in October that Trump would go on a revenge spree that “America’s CEOs don’t have the stomach for.”
Trump’s triumph in the race for the White House spurred a surge in stocks that sent the blue-chip Dow soaring by more than 1,500 points. The S&P 500 jumped 2.53% for its best post-election day in history. pic.twitter.com/347NkIMIel
— Sheehy Strategy Group (@SheehyStrategy) November 7, 2024
The Dow Jones Industrial average rose over 3.5% Wednesday, closing at a new record high. The S&P 500 and Nasdaq also saw increases, surging 2.5% and 2.95%, respectively.
The stock market gains result from “anticipation of stronger domestic growth, increased [mergers and acquisitions] activity, an extension to personal tax cuts, and hopes of lower corporate taxes,” according to a group of UBS strategists wrote in a note to clients.
Trump signed the Tax Cuts and Jobs Act into law on January 1, 2018, lowering the corporate tax rate from 35% to 21% and the top marginal tax rate from 39.6% to 37%. The president-elect is also expected to replace FTC chair Lina Khan, who helped lead the Biden-Harris administration’s efforts to curb mergers and acquisitions activity.
Meanwhile, the value of the U.S. dollar skyrocketed following Trump’s victory, posting its biggest gain in eight years.
A slew of business magnates have congratulated Trump following his presidential election victory, including Amazon CEO Jeff Bezos, Apple CEO Tim Cook, Goldman Sachs CEO David Solomon and Open AI CEO Sam Altman.
“Congratulations President Trump on your victory!” Cook wrote in a post on X Wednesday. “We look forward to engaging with you and your administration to help make sure the United States continues to lead with and be fueled by ingenuity, innovation, and creativity.”
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