US Stocks closed green before Donald Trump’s presidency started, but the S&P 500 and Dow marked their second week decline in logs as uncertainty about new Trump administration hovered over the economy. Equities shied off their highs of the session after Donald Trump assumed power and delivered an inaugural speech parroting the comments around protectionism he made throughout his presidential campaign. Besides measures to support workers in America, Trump provided few supplementary details that clarify his legislative priorities before investors.
In his speech, Trump stated that every decision on trade, immigration, taxes, and foreign affairs will be in the benefit of American workers and their families. He also stated that the American borders need to be protected from the pillage of other countries making products, stealing American companies and destroying their jobs. Such intentions is likely to influence investor decisions in a big way, as anxiety over the administration’s uncertain policies built up across the country.
The stocks hiked following Donald Trump’s win, with stock indexes reaching above record-level as investors reckoned upon the administration’s pursuit of corporate tax deductions, infrastructure investment, and deregulation, all of which are sought to speed up stock inflation and economic growth. However, stock indexes stalled recently as investors searched for convincing proof that such acceleration will be justified by policy-related actions.
The week saw a steep decline in the Dow and S&P 500, which is second direct weekly decline for both indexes. However, the Dow components of most tech-giants reported better-than-expected earnings at the end of the session. IBM’s index rose 2.2%, while American Express beat estimated revenue by shying off 0.6%. General Electric Company reported a drop of 2.2% after a drop in the company’s revenue was larger than expected, while Procter & Gamble Company rose 3.3%, posting a better-than-expected earnings.
However, investors expressed mixed opinions about the movement of the indexes, saying that even pro-investors are failing to predict trends in the near term. Investors are seen psyching themselves instead of selling stocks, which helps in drawing the conclusion that the stock market will go in whichever direction it wants, irrespective of the behavior of investors. Chris Ciovacoo, blogger for See It Market draws parallels with 1982 stock hike, where the market reached a record-high in nine years. However, investors anticipate the impact of the new administration’s investor policies, and waiting to see how future events shape up for the stock market.