Donald Trump stood on Wall Street on Thursday, ringing the iconic stock market bell to kick off trading for the day.
A large crowd of top business leaders gathered to celebrate, as the stock market has been on a massive rise since Trump’s election victory.
Trump also recently received the title of Time Magazine’s Person of the Year, making the event even more celebratory.
The U.S. economy is currently strong, with growth at 2.8%, unemployment at 4.2%, and the stock market hitting new records.
The Dow Jones has risen by over 17% this year, while the S&P 500 and Nasdaq have grown by 28% and 40%, respectively. Investors are hopeful that Trump’s policies, like cutting regulations and approving business takeovers, will keep the momentum going, the BBC reported.
However, experts warn that these market highs may not last. Some of Trump’s other ideas, like cutting government spending, increasing trade barriers, and deporting migrants, could harm the economy.
Mark Zandi, an economist at Moody’s Analytics, told the BBC that if Trump fully enacts his plans, it might create serious challenges for economic growth.
At the event, Trump stayed focused on topics the market likes, such as lowering taxes for businesses and speeding up government approvals. He even joked that approving a nuclear power plant could take just a week.
These types of policies boosted corporate profits and stock prices during his first term, but trade wars and the pandemic also led to setbacks, the BBC noted.
While the market grew by 67% under Trump’s first presidency, experts are unsure if he can replicate this success.
Trump himself avoided giving investment advice, saying he didn’t want to cause any problems for the market, but he promised that the U.S. would continue to be a world leader.
According to the BBC, only time will tell if this stock market rally will bring lasting prosperity or if challenges lie ahead.
https://www.bbc.com/news/articles/clyn8yjw11go