Deepshikha Maan, Jadetimes Staff
D. Maan is a Jadetimes news reporter covering Asia
US Markets and Bitcoin Surge Following Trump’s Re election
Record Gains on Wall Street and Dollar’s Strongest Jump in Years
U.S. stocks soared to new highs on Wall Street following Donald Trump’s historic re-election. The dollar made its most significant gain in eight years as investors reacted to Trump's proposed policies. His promises of tax cuts and increased tariffs have spurred inflationary expectations, which could influence the pace of future interest rate decisions.
Bitcoin Rises to an All Time High
Bitcoin surged to a record $75,371.69 as Trump pledged to support cryptocurrency development, contrasting the Biden administration’s regulatory crackdown. Trump hinted at removing SEC Chair Gary Gensler and proposed appointing Elon Musk to audit government spending, both moves that could favor the crypto industry.
Global Market Reactions
U.S. stock indexes rallied, led by the banking sector, while European markets had mixed results. Japan’s Nikkei index climbed 2.6%, but China's Shanghai Composite and Hong Kong’s Hang Seng dropped. The dollar’s rise pressured the pound and euro, leading to declines in their values.
Tariff Warnings from Global Economists
Trump’s proposed tariff increases, especially on China, have stirred concerns among economists who fear potential trade shocks worldwide. The UK’s Chancellor, Rachel Reeves, emphasized the importance of free trade, while economists warned of slower growth under Trump's proposed isolationist trade policies.
Implications for U.S. Bonds and Foreign Policy
U.S. bond yields spiked as investors expected an increase in government borrowing. Trump’s stance on foreign policy has raised questions about his commitment to defending Taiwan, a critical chip producer, amid rising tensions with China.
Upcoming Federal Reserve Decision
The U.S. Federal Reserve’s latest decision on interest rates, expected Thursday, will further guide market sentiment as investors monitor economic strategies under the new Trump administration.
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