5 charts that show Trump’s immense impact on the post-election market


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fake images; BI
  • Donald Trump’s victory in the presidential elections has driven important movements in the financial markets.

  • Investors anticipate tax cuts and looser regulation from Trump.

  • Here are five charts that show how Trump’s victory has affected the markets.

Donald Trump’s election victory immediately sent financial markets into a frenzy.

Stocks soared to records on the prospect of tax cuts and looser regulation. Bank stocks, in particular, got a boost amid speculation about increased trading activity.

Bond yields also rose as investors priced in expectations that Trump’s protectionist trade policies would be inflationary, complicating plans for further rate cuts. This led to renewed interest in money market funds. The dollar rose and gold fell.

Cryptocurrencies of all types charged more, with bitcoin setting a series of records above $90,000, as traders waited for lighter regulation from the self-proclaimed “crypto president.”

A group of Bank of America analysts led by Michael Hartnett, chief investment strategist at BofA Global Research, took stock of recent moves.

Below are five charts that show how extreme the market fluctuations have been across all assets:

Chart showing entry into US large cap stocks
U.S. large-cap stocks took in $44.1 billion last week, the biggest week of inflows on record.Bank of America Global Investment Strategy, EPFR
Chart showing financial fund inflows
Financial funds received $2.6 billion, the largest week of inflows since January 2022.Bank of America Global Investment Strategy, EPFR
Chart showing gold outflow
Gold recorded outflows of $1.6 billion, the steepest pace of weekly sales since July 2022.Bank of America Global Investment Strategy, EPFR
Chart showing money market funds
Money market fund assets rose to a record $6.7 trillion.Bank of America Global Investment Strategy, Bloomberg
Chart showing crypto fund flows
Crypto funds took in $6 billion last week, the largest week of inflows on record.Bank of America Global Investment Strategy, EPFR

Read the original article on Business Insider

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