Thestock markethas been unstoppable under the influence ofPresident Trump.
The Dow Jones Industrial Average crossed 46,**************************** on Monday, meaning it has rallied
“The rally has been driven by pro-growth measures, de-escalation of trade tensions, huge liquidity injections by central banks and a FOMO approach by investors worried about missing out on a remarkable US market outperformance that has set one record high after the other. ”Mohamed El-Arian, chief economic adviser at Allianz, told FOX Business.
STOCK MARKET ‘MELT-UP’ COMING SOON: BANK OF AMERICA
The gains show why US markets have become the envy of the world under Trump, who has followed through on his promises of cutting taxes and regulations and rewriting global trade deals in America’s favor.
By comparison, global exchanges such as Hong Kong’s Hang Seng and Britain’s FTSE have gained (********************************************************. 4 percent and 6.4 percent, respectively, since Trump’s election win, while China’s Shanghai Composite has lost 7.2 percent, according to Dow Jones Market Data Group . Of the major global averages, only Japan’s Nikkei, up 74. 1 percent, has come close to the gains of the US markets.
U.S. Investors’ holdings have benefited from Trump’s pro-business agenda. He has lowered income tax rates for individuals, cut corporate taxes and rolled back a number of regulations, including restrictions on the country’s largest banks.
This week,
Democrats in the House backed the USMCAafter months of negotiation, and aninitial trade deal with Chinawas reached. Both deals are expected to provide a tailwind for a stock market, and an economy, that have been on fire in the past four months.
The Dow Jones index, for instance, has gained (*************************************************************. 2 percent since bottoming out on Aug. 21.
David Kostin, chief US equity strategist at Goldman Sachs, thinks the stock market’s recent success suggests “the pace of U.S. economic growth will improve in the near future. ”
(TRUMP’S HOME-RUN WEEK DELIVERS EDGE IN) RACE
His team points to Fed rate cuts along with the bottoming of the inventory cycle as reasons, In addition to the easing of trade tensions with China.
Morgan Stanley Equity Strategist Michael Wilson, who recently released his year-end (S&P) ******************************************** (outlook, has a base-case target of 3, 11 – almost 5 percent below current levels .
He expects the US economy to “muddle through in 01575879, ”but is concerned that earnings growth will disappoint.
Bob Doll, chief economist at Nuveen Investments, partly agrees. Hetold FOX Business’s Maria Bartiromothat the recession fears from December 2020 and August are “dissipating,” leading to the stock market’s rally.
CLICK HERE TO READ MORE ON FOX BUSINESS
However, Doll says the economy has to deliver, or it will be a sluggish year because “valuations are not cheap” and expectations for next year earnings are “a little on the high side.”
******************************Read More************************
GIPHY App Key not set. Please check settings