President-elect Donald Trump's pro-business policies could potentially drive the stock market to unprecedented levels, according to Jeremy Siegel, a finance professor at the Wharton School of the University of Pennsylvania.
What Happened: Siegel, speaking on CNBC's "Squawk Box," suggested that Trump's policies could have a significant impact on the stock market. "President-elect Trump is the most pro-stock market president we have had in our history," Siegel said.
"He measured his success in his first term by how well the stock market did. You know, it seems to me very unlikely he's going to implement policies that are going to be bad for the stock market," Siegel said.
Following Trump's election win, the market has already experienced a surge, with investors banking on his pledges of tax cuts and deregulation to drive growth and benefit-risk assets.
Why It Matters: The S&P 500 tracked by SPDR S&P 500 ETF (NYSE:SPY) rose by 4.66% last week, marking its best week since November 2023, and trading above 6,000 for the first time. The Dow Jones Industrial Average represented by the SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) also reached a new milestone of 44,000 post-election.
Stocks after Trump's victory, including Tesla Inc (NASDAQ:TSLA) and major banks like JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC), experienced significant gains. Additionally, Bitcoin (CRYPTO: BTC) continued to hit record highs as traders anticipated looser regulations under Trump.
As the era of the "Trump trade" draws to a close, the market's attention is shifting toward the potential impacts of Trump's policy priorities on investments. His promises of lower corporate taxes and deregulation are seen as beneficial for the economy and stock prices, while other pledges, such as immigration clampdowns and high tariffs, are viewed as potential economic obstacles.
Image via Wikimedia Commons
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
