The day after Donald Trump was confirmed the winner of the 2024 presidential election, the U.S. stock market took off like one of Elon Musk’s rockets. Major stock indices posted gains for the day ranging from 2.5% (S&P 500) to 6% (Russell 2000). The stock market is forward-looking, a mechanism for discounting expected future cash flows into present valuations of companies’ shares.
Clearly the market applauds the election results and is anticipating a return to strong growth and huge investment returns in the second Trump Administration.
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