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Trump tariff orders flip the script for markets as stocks hit records

Jan 24, 2025 - markets.businessinsider.com
This week, President Donald Trump shifted the market narrative by easing fears over his trade policy, particularly concerning tariffs, which had previously worried investors about potential inflation and higher interest rates. His focus on a pro-growth agenda, marked by a series of executive actions and announcements, has lifted the S&P 500 to new records. Investors are now more optimistic about economic growth over the next four years, with sentiment improving as they anticipate deregulation and tax cuts. The bond market has also shown signs of recovery, with yields on the 10-year US Treasury stabilizing.

Trump's executive actions included declaring a "national energy emergency" to boost fracking and oil production, announcing a $500 billion AI infrastructure deal with OpenAI, Oracle, and SoftBank, and signing an executive order related to cryptocurrency. These moves have redirected market attention towards growth opportunities, with AI tech stocks seeing a midweek boost. Investor sentiment has improved significantly, with a notable increase in bullish outlooks for the next six months, as the market perceives Trump's policies as more beneficial for growth than detrimental due to trade uncertainties.

Key takeaways:

  • Trump's shift in trade policy narrative eased investor fears, leading to record highs in the S&P 500.
  • Investors are now focusing on Trump's pro-growth agenda, including deregulation and tax cuts.
  • The bond market has shown signs of recovery, with the 10-year US Treasury yield stabilizing.
  • Trump's executive actions, including energy and AI initiatives, have bolstered investor sentiment and market optimism.
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