U.S. Stock Market Rises as Trump Takes Office for Second Term
U.S. stock market futures rose on the day of Donald Trump’s second presidential inauguration, as investors bet on a series of immediate actions by the new administration to boost the economy. The Dow Jones Industrial average futures gained 167 points, or 0.4%, while S&P 500 futures added 0.4% and Nasdaq-100 futures rose 0.4%.
Traders were likely encouraged by news that Trump would not immediately install new tariffs on day one, and that a trade memorandum from the new administration would ask for investigations of China, Canada, and Mexico for unfair trade practices and currency policies. Trump’s inaugural address also emphasized his plan to overhaul the trade system, saying that instead of taxing U.S. citizens to enrich other countries, the U.S. would tariff and tax foreign countries to enrich its own citizens.
In addition to trade, Trump is expected to declare a national energy emergency, which would expand the president’s legal options for allowing drilling in Alaska and other areas. Other executive actions planned for Monday include addressing business deregulation and immigration restrictions.
Stanley Druckenmiller, chairman and CEO of the Duquesne Family Office, said that CEOs are “somewhere between relieved and giddy” about the new administration, and that the market is likely to benefit from the shift from an “anti-business” administration to a more business-friendly one. However, Druckenmiller also cautioned that rising interest rates could pose a challenge for the overall market.
Bitcoin jumped to a new record above $109,000 on Monday before rolling over and trading lower.
