
Donald Trump’s inauguration on Monday could signal a more tumultuous phase for markets, with the Republican likely to move rapidly on a wide range of issues, including trade and immigration, which are expected to influence asset prices.
Trump’s tariff measures might exacerbate inflation fears, which are already weighing on bond and stock prices, while efforts to tighten immigration controls could also have an impact on those markets. Moves to relax regulation are expected to boost asset prices, especially crypto and bank stocks.
The markets will be extremely sensitive to this speech, said Jeff Muhlenkamp, a portfolio manager at Muhlenkamp & Co. “Everyone right now is attempting to parse every phrase and nuance that comes from Trump or his closest aides.
Some prices already reflect Trump’s planned policy goals, such as tax reduction, decreased regulations, and tariffs on foreign goods. The speech could also set the tone for future White House activities in the coming days and weeks.
According to Doug Peta, chief U.S. strategist at BCA Research, financial markets are poised to move on any indication that the new administration may take a different direction than it has previously indicated. Stocks have historically had a muted reaction to presidential inaugurations, but this time may be different given Trump’s unpredictable nature and tendency to shock markets with his commentary, according to investors.
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