Just days after Trump became the President-Elect, the DOW has jumped to record highs. The DOW dropped on election night quite substantially, which can be expected due to uneasiness and and worry about the future, but it regained what it had lost in the coming days, and then surged to an all-time high of 18,807.88 on Thursday. Much of this can be attributed to an expectation of less regulation and more potential stimulus spending, according to Washington Post. According to FOX Business IG Market Analysis, “The source of this bounce seems to be grounded in the differential between Trump’s economic and social policies”. He goes on to say, “With the promise of a tax repatriation scheme for multinationals, lower tax rates, and higher government spending, it seems the markets are waking up to the chance of a growth-driven economic period for the U.S.”
The DOW had dropped on election night, which caused a stir and was a point of discussion for liberals against Trump, but according to MarketWatch, the average drop on election nights is negative 0.9, and the top 5 biggest drops have been with the election of democrat Presidents. Below is the chart from their website:
This election cycle has been crazy and uncertain, but the surge in the DOW is a step in the right direction for the Trump Administration and the economy. Voters are hopeful for the future and what is to come economically, and this is indicative from the surge, and how it is continuing to finish at record highs. It may be too soon to tell if this is indicative of how the administration will go and whether or not it will have much positive impact on the economy. We are hopeful.
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