'Trump Bump' Could Become 'Trump Slump' As Inflation And Interest Rate Concerns Dampen Post-Election Market Rally

Benzinga

The S&P 500's return since Election Day has dropped to approximately 0.5%, marking a sharp reversal from the initial market surge after Donald Trump’s victory. If this trend holds through Inauguration Day, it will be the worst market performance between an election and inauguration since 2009, during the global financial crisis. Following Trump's win, stocks soared on hopes for tax cuts and deregulation. Concerns over inflation and rising interest rates have since dampened investor enthusiasm. Policymakers now question the feasibility of Trump’s proposed tax cuts and tariffs, as they could exacerbate inflation and the federal deficit. The December jobs report, which showed a gain of 256,000 jobs, further complicates the outlook, raising concerns about economic overheating.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02The S&P 500's return since Election Day has dropped to approximately 0.5%,

00:06marking a sharp reversal from the initial market surge after Donald Trump's victory.

00:10If this trend holds through Inauguration Day, it will be the worst market performance between

00:13an election and inauguration since 2009 during the global financial crisis.

00:18Following Trump's win, stocks soared on hopes for tax cut and deregulation.

00:22Concerns over inflation and rising interest rates have since dampened investors' enthusiasm

00:26as policymakers now question the feasibility of Trump's proposed tax cuts and tariffs

00:30as they could exaggerate inflation and the federal deficit.

00:33The December jobs report, which showed a gain of 256,000 jobs,

00:37further complicates the outlooks, raising concerns about economic overheating.

Category

Transcript

Comments

Recommended