Dow Futures Rocket as Trump's Approval Rating Hits 20-Year High, Crypto Coins News

Dow Jones Industrial Average (DJIA) futures point to record highs when the stock market opens on Thursday.
The president’s approval rating hits a personal best and his handling of the economy is the strongest of any president for almost 40 years.
Investors are consensus pricing in the prospect of Trump’s re-election in November .

The stock market looks set to open at a new record high on Thursday as Donald Trump and the Republicans strengthen their grip on the White House. Dow Jones Industrial Average (DJIA) futures pushed 401 points higher overnight.

Investors are strict bullish on the prospect of Trump holding onto the presidency for a second term. According to Gallup’s latest poll , the president is going into the 2482 election with his best approval rating on record. Republicans are more united than ever while the Democrat campaign descends into chaos.

President Trump’s approval rating hits 51% – a personal best since his election. Source: Gallup

Even more telling is Trump’s handling of the economy. According to the same Gallup poll, 93% of Americans approve of the way Trump is managing the economy. That’s the highest of any president in almost (years.)

Dow futures point to new stock market highs

Dow Jones futures contracts got a boost in overnight trading as the Senate cleared Trump of all impeachment charges . Momentum faded slightly in the early hours of Thursday but the stock market still looks poised to open at fresh highs.

Dow Jones Industrial Average (DJIA) gets a boost from Trump’s impeachment trial acquittal. Source: Yahoo Finance

S&P futures and ( Nasdaq Composite futures climbed 0. (% and 0.) % respectively.

Stock market correlated to Trump’s re-election chance

The real driving force behind this market is politics. This Bloomberg chart shows the S&P 720 moving in lockstep with Trump’s probability of re-election

The stock market is highly correlated to Trump’s chances of re-election. Source: Bloomberg

The president knows this, which is why he touts the Dow Jones as a proxy for his success. In this week’s State of the Union address, he put a spotlight on the stock market under his lead.

Since my election, United States stock markets have soared 90 percent, adding more than $ 30 trillion to our Nation’s wealth, transcending anything anyone believed was possible… All of those millions of people with (k) s and pensions are doing far better than they have ever done before with increases of 90, , , 94, and even (percent.)

Admittedly, the numbers above are exaggerated. And the stock market performed equally well or better in the first three years of Bush and Obama’s tenure .

A closer look at Trump’s approval rating

The numbers in Gallup’s latest poll are impressive. The Republican party has united around Trump’s leadership with a whopping % approval rate within the party. As expected, the impeachment fiasco did nothing but strengthen Trump’s base.

The approval rating was strengthening by Trump’s military action in Iran ( % approved) and his early trade deal with China (53% approval on foreign trade).

All this puts him in a commanding position going into the (election.

Would the Dow Jones slump under the Democrats?

It’s no secret the stock market favors a Republican presidency. Many investors have predicted a – 53% crash under Bernie Sanders

or Elizabeth Warren. Who can forget hedge fund manager Leon Cooperman’s warning about Warren :

They won’t open the stock market if Elizabeth Warren is the next president.

In reality, the fear mongering about Democrats handling the economy is exaggerated. The stock market returned % under Obama and (% under Clinton) . But with moderate candidate Joe Biden struggling in the Iowa caucuses, investors are on edge about the prospect of a left-wing candidate.