US 30 – Daily Chart
The price of US 30 has surged to a new all-time high above the 43,500 level. The previous high around 43,325 will provide support for the latest breakout.
The Dow Jones Industrial Index was a key winner on the day with gains of more than 3% as investors see Trump’s policies being supportive of industrial and manufacturing firms.
“There’s clarity: We’re not going to see another January 6th event. The market is breathing a huge sigh of relief on that,” said Michael Block, coo at AgentSmyth. “The mainstream consensus was that we weren’t going to know. And we know”.
“There is this huge perception of a business friendly, tax-friendly regime coming into place, especially with them winning the Senate,” said Block.
JPMorgan analysts wrote in a report ahead of the election result that stocks could gain through the end of 2024. However, “the uncertainty around policy execution would become more prominent in 2025”.
“This was a market coiled for an extreme reaction one way or the other,” said Art Hogan at B Riley Wealth Management. “The market is saying: We just elected a business-friendly president. … The initial reaction to a Trump administration is met with enthusiasm that may be temporary”.
The S&P 500 has grown an average of 10% under Democrats and 6.7% under Trump’s Republicans, according to CFRA Research. GDP in the US has also underperformed at 2.4% versus 3.0% they added.