The Trump market a month in – Here’s everything that has changed

Donald Trump’s 2024 presidential election win has spurred significant market activity across several industries. The S&P 500 surged over 5%, and cryptocurrencies like Bitcoin reached new all-time high levels. Small-cap stocks, spurred by a domestic growth agenda, have also shown signs of gaining value long-term.

In a global market surge analysts have termed the “Trump market,” Tesla’s stock has skyrocketed by nearly 50%. Tesla’s stock price uptick was largely fueled by its CEO Elon Musk’s ties to the new administration. 

On the crypto end, Bitcoin (BTC), which achieved a new high of $73,000 hours after Trump was announced the victor, has now broken past the $100,000 mark, gaining 34% since the election. 

Moreover, investors have channeled nearly $140 billion into U.S. equity funds following Donald Trump’s November 5 victory. Data from EPFR indicates $139.5 billion in inflows, making November the busiest month for U.S. equity fund investments since records began in 2000.

The influx of U.S. equity funds has propelled major stock indices to new record highs. Traders are seemingly overlooking concerns about potential inflationary risks from Trump’s proposed policies, including higher tariffs, which could complicate the Federal Reserve’s plans for future rate cuts. 

Mixed signals from stocks, labor markets, and Treasury yields

According to a Financial Times report, emerging market stocks, excluding China, remained subdued amid a stronger dollar and rising Treasury yields. However, stock market analysts believe fears of a possible trade war have caused commodities like oil and copper to weaken. 

Meanwhile, Treasury yields stayed close to pre-election levels, confounding expectations of inflationary pressure from Trump’s policies. Five-year inflation forecasts also held steady, suggesting there’s growing skepticism from investors over Trump’s predicted aggressive fiscal changes.  

In the labor market, challenges emerged as job growth slowed. November saw 146,000 new jobs added, down from October’s 184,000, a 20% downtick over a period of 30 days. 

U.S. stocks have significantly outpaced global markets, particularly Europe, with the tech sector playing a pivotal role in this outperformance. Bank of America analysts have labeled this trend as the “American exceptionalism” trade, driven by expectations of pro-business policies.

Trump’s market-friendly stance, including promises of tax cuts and deregulation, has led to short-term stock surges. However, financial experts reckon the market’s continued growth hinges on his ability to reduce regulatory burdens, particularly those imposed under President Biden.

Crypto market outlook post-US elections 

Since Donald Trump’s victory in the 2024 U.S. Presidential election, the cryptocurrency market has seen significant gains, with notable surges in Bitcoin and some altcoins. According to Coingecko data, the global crypto market cap has soared by over 40% in the last 30 days.

The real standout performance has been Ripple (XRP), which saw a massive 375% increase post-election. Ripple Labs has been vocal about its optimism about Trump’s administration, citing his pro-crypto stance and a possible shift in regulatory policies. XRP’s price soared from around $0.55 to over $2, with its market cap reaching a high of $139 billion. 

The crypto’s excellent performance is tied to anticipated regulatory clarity under Trump, which may have a positive impact on Ripple’s continuing legal battles with the U.S. Securities and Exchange Commission (SEC).

Cryptocurrencies like Solana and other smaller tokens profited from the increased market optimism following the election. New tokens, such as Peanut the Squirrel (PNUT), have increased by more than 1,000% since its inception. The general market sentiment indicates that traders are counting on favorable regulations and increased usage of cryptocurrency technologies under the next administration.

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap