Donald Trump’s victory in the presidential election triggered an immediate and sharp reaction in global financial markets.
Stock indices surged in early trading and are now on track to close at record highs. Bank stocks are faring particularly well, driven by expectations of less government regulation.
Treasury yields increase as investors grow concerned that tariffs and tax cuts will reignite inflation. International currencies like the Euro, Yen, and Canadian Dollar have weakened against the U.S. dollar
The focus now turns to the Federal Reserve, which wraps up its two-day meeting on Thursday. While futures prices still indicate a 25bps cut to the Fed Funds rate, markets are starting to reassess their expectations for the path of rate cuts in 2025.
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