BTC, S&P, USD: Market react to Trump victory
- Following Trump’s win, U.S. stock markets, Tesla, banks, and bitcoin rallied sharply, with expectations that his policies—particularly a corporate tax cut to 15%—will boost corporate earnings.
- The dollar index reached a four-month high on expectations that Trump’s policies could drive inflation, leading the Fed to keep interest rates high
Former President Donald Trump claimed a sweeping victory over Vice President Kamala Harris in the 2024 presidential race. As a result, the U.S. stock market surged, with Tesla, banks, and bitcoin all charging higher.
Trump’s pledge to slash the corporate tax rate to 15% from 21% could lift S&P 500 earnings by roughly 4%, according to projections from Goldman Sachs.
The dollar index climbed more than 2%, topping 105 for the first time in four months, as markets priced in a stronger greenback under a Trump administration. Investors anticipate his policies will fuel inflation, which would pressure the Federal Reserve to maintain elevated interest rates to prevent an overheated economy.
Bitcoin hit record highs as well, boosted by Trump’s campaign promise to champion cryptocurrency.
How much of Trump’s agenda will become reality remains to be seen, with Republicans’ control of Congress yet undecided.