The red wave that catapulted President-elect Trump to a second term created a green money wave for U.S. investors.
The Dow Jones Industrial Average and the S&P 500 notched fresh record highs Friday and closed out the best week of the year, rising 4.7% and 4.6%, respectively. The Nasdaq Composite hit its 31st record close of 2024, rising 5.7% for the week.
“Contrary to popular belief, under a Republican president, you really don’t want gridlock. You don’t want a split Congress because the best returns since World War II have come under a red wave when the president and both houses of Congress were controlled by the Republicans,” CFRA Chief Investment Strategist Sam Stovall said during an appearance on “Making Money with Charles Payne.”
“In that case, the market was higher by an average of 13% per year, rising 75% of the time. So, the scenario we have right now is the best for a Republican president.”
Republicans took control of the Senate this week. As of Friday evening, Republicans are leading in races to control the House.
FOX NEWS: ELECTION 2024 LIVE RESULTS
Stovall also noted that small cap stocks, which generate most of their revenue/profit domestically, rise an average of 14% annually in a red wave.
Trump won both the popular and the electoral vote, defeating Vice President Kamala Harris and cementing the 45th president as the 47th come January 2025.
HOW THE WHITE HOUSE COULD USE ELON MUSK’S EMPIRE
“Nothing will stop me from keeping my word to you, the people. We will make America safe, strong, prosperous, powerful and free again. And I’m asking every citizen all across our land to join me in this noble and righteous endeavor,” Trump told supporters early Wednesday morning.
During his remarks, stock futures spiked and continued rallying throughout the week. The Dow soared an unprecedented 1,500 points Wednesday, touching 44,000 later in the week for the first time.
“This is what lower regulation and lower taxes look like,” Great Hill Capital Chairman Thomas Hayes said during an appearance on “Varney & Co.” Wednesday.
Trump has promised to cut regulatory red tape for industries such as housing and energy with his “drill baby drill” mantra. As for taxes, his historic Tax Cuts and Jobs Act of 2017, set to expire at the end of 2025, will likely be extended.
He is also pushing to lower the corporate tax rate to 15% from 21% and to cut government waste with an “efficiency committee” with the help of billionaire Elon Musk.
STOCK INFLOWS SPIKE AFTER TRUMP VICTORY
Over the past five days, within the S&P’s largest sectors, consumer discretionary stocks gained 7.7%, industrial 6% and energy over 5%. Utilities and consumer staples lagged.
The Federal Reserve also did its part in juicing stocks by cutting interest rates by 25 basis points and signaling the path to lower rates likely remains intact.
“We’re on a path to a more neutral stance, and that’s very much what we’re on. That has not changed at all since September. And, you know, we’re just going to have to see where the data leads us. We have, you know, a whole six weeks of data to look at to make that decision in December,” Fed Chairman Jerome Powell said during a press conference Wednesday.
Over 64% of market participants say the Fed will likely cut interest rates again in December by 25 basis points, according to the CME’s FedWatch Tool, which predicts future rate moves. Even more are likely in 2025.
A Trump victory sent stock investors into beast buying mode, which was broad in nature with most sectors seeing big gains, minus the more defensive areas.
The red wave that catapulted President-elect Trump to a second term created a green money wave for U.S. investors.
The Dow Jones Industrial Average and the S&P 500 notched fresh record highs Friday and closed out the best week of the year, rising 4.7% and 4.6%, respectively. The Nasdaq Composite hit its 31st record close of 2024, rising 5.7% for the week.
Ticker Security Last Change Change %I:DJI DOW JONES AVERAGES 43988.99 +259.65
+0.59%
SP500 S&P 500 5995.54 +22.44
+0.38%
I:COMP NASDAQ COMPOSITE INDEX 19286.776974 +17.32
+0.09%
“Contrary to popular belief, under a Republican president, you really don’t want gridlock. You don’t want a split Congress because the best returns since World War II have come under a red wave when the president and both houses of Congress were controlled by the Republicans,” CFRA Chief Investment Strategist Sam Stovall said during an appearance on “Making Money with Charles Payne.”
“In that case, the market was higher by an average of 13% per year, rising 75% of the time. So, the scenario we have right now is the best for a Republican president.”
Republicans took control of the Senate this week. As of Friday evening, Republicans are leading in races to control the House.
FOX NEWS: ELECTION 2024 LIVE RESULTS
iShares Russell 2000 ETF
Stovall also noted that small cap stocks, which generate most of their revenue/profit domestically, rise an average of 14% annually in a red wave.
Trump won both the popular and the electoral vote, defeating Vice President Kamala Harris and cementing the 45th president as the 47th come January 2025.
HOW THE WHITE HOUSE COULD USE ELON MUSK’S EMPIRE
“Nothing will stop me from keeping my word to you, the people. We will make America safe, strong, prosperous, powerful and free again. And I’m asking every citizen all across our land to join me in this noble and righteous endeavor,” Trump told supporters early Wednesday morning.
Dow Jones Industrial Average
During his remarks, stock futures spiked and continued rallying throughout the week. The Dow soared an unprecedented 1,500 points Wednesday, touching 44,000 later in the week for the first time.
“This is what lower regulation and lower taxes look like,” Great Hill Capital Chairman Thomas Hayes said during an appearance on “Varney & Co.” Wednesday.
Cut regulatory red tape for the housing industry and others
“Drill Baby Drill” to revive American energy independence
Extend the Tax Cuts and Jobs Act of 2017, set to expire at the end of 2025
Lower the corporate tax rate to 15% from 21%
Cut government waste with an efficiency committee
Trump has promised to cut regulatory red tape for industries such as housing and energy with his “drill baby drill” mantra. As for taxes, his historic Tax Cuts and Jobs Act of 2017, set to expire at the end of 2025, will likely be extended.
He is also pushing to lower the corporate tax rate to 15% from 21% and to cut government waste with an “efficiency committee” with the help of billionaire Elon Musk.
STOCK INFLOWS SPIKE AFTER TRUMP VICTORY
Over the past five days, within the S&P’s largest sectors, consumer discretionary stocks gained 7.7%, industrial 6% and energy over 5%. Utilities and consumer staples lagged.
Ticker Security Last Change Change %XLY CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF 215.16 +3.04
+1.43%
XLI INDUSTRIAL SELECT SECTOR SPDR ETF 142.07 +1.45
+1.03%
XLE ENERGY SELECT SECTOR SPDR ETF 93.75 +0.62
+0.67%
XLU UTILITIES SELECT SECTOR SPDR ETF 79.17 +1.45
+1.86%
XLP CONSUMER STAPLES SELECT SECTOR SPDR ETF 80.79 +0.96
+1.20%
The Federal Reserve also did its part in juicing stocks by cutting interest rates by 25 basis points and signaling the path to lower rates likely remains intact.
“We’re on a path to a more neutral stance, and that’s very much what we’re on. That has not changed at all since September. And, you know, we’re just going to have to see where the data leads us. We have, you know, a whole six weeks of data to look at to make that decision in December,” Fed Chairman Jerome Powell said during a press conference Wednesday.
Over 64% of market participants say the Fed will likely cut interest rates again in December by 25 basis points, according to the CME’s FedWatch Tool, which predicts future rate moves. Even more are likely in 2025.
Latest Business News on Fox Business