Donald Trump’s victory in the November US presidential election led to an initial surge in markets, with stocks rising, the dollar strengthening, and Bitcoin surging. However, as the Republican is set to return to the White House, investors are reassessing their bets.
The S&P 500 Index has lost a significant portion of its “Trump bump” since the election, with many questioning whether the Federal Reserve’s interest rate cuts will materialize under Trump’s administration. The Treasury yield curve has also become steeper after flattening initially, indicating rising interest rates.
Bitcoin and the dollar, however, have managed to maintain their gains, showing some resilience despite the market’s uncertainty. As Trump prepares to take office, investors are reevaluating their strategies, leading to a decrease in market gains since the election bounce.
Source: https://www.bloomberg.com/news/articles/2025-01-19/trump-s-win-sparked-euphoria-in-markets-now-comes-the-real-test