The US stock market’s post-election rally, nicknamed the “Trump bump,” is losing momentum due to a sharp decline in bond prices. Since Election Day, the S&P 500 index has seen only a slight increase of 0.8%. This contrasts with previous years when stocks surged after presidential elections.
The cause of this sell-off lies in the rapid rise in bond yields, which is making borrowing more expensive for companies and governments. As a result, investors are becoming more cautious, leading to a decrease in stock prices.
What’s next for the market? With no clear catalyst for a rebound, investors will be watching closely for any signs of economic improvement or inflation concerns that could trigger another rally.
Source: https://www.marketwatch.com/story/stock-markets-trump-bump-nearly-erased-thanks-to-bond-selloff-whats-next-7278f230