Markets are closed. Enjoy this special Fox News radio piece: “The President-elect Trump bump is real” by Victoria Craig.
Despite a few pullbacks, U.S. stocks are in the midst of their biggest post-election rally since John F. Kennedy was elected in 1960, data from Dow Jones market data group show. Back then, the S&P 500, an index that most closely reflects the health of the U.S. economy, rallied nearly 9% ahead of inauguration day.
After President-elect Donald Trump’s White House win in November, the index has posted gains of more than 6% on hopes his campaign promises of lower taxes, more infrastructure spending, and less regulation go into effect.
The big question for investors now is can the market’s momentum continue? A number of Wall Street analysts believe the short answer is yes, though a range of factors could either propel it higher or squash the rally altogether.
Peter Kenny, senior market strategist at Global Markets Advisory group said until Donald Trump actually begins to enact his policy goals during his first 100 days in office, Wall Street’s biggest focus will be on corporate earnings season. A time when public companies release financial performance from the previous quarter.
Banks and other financial stocks have helped lead the Trump rally. Because of that, Kenny said disappointing results could limit further gains for the overall market since Wall Street will need to see underlying strength from corporate America in order to justify the lofty gains reached after election day.
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