Investing.com – U.S. President-elect Donald Trump’s inauguration is expected to take center stage this Monday, with traders particularly watching for greater clarity around the potential impact of his sweeping policy plans. Trump is expected to implement several executive orders in the first hours of the new administration that will affect a number of issues. Elsewhere, TikTok begins to restore service in the US as Trump says the app should be stored in the country, while the value of Trump’s memecoin rises.
1. Trump’s inauguration
Donald Trump will be sworn in as the 47th president of the United States on Monday.
In the run-up to his return to the White House, Trump has promised to sign a wave of executive orders on his first day back in office as part of an early effort to fulfill his campaign promises.
Trump is expected to unveil more than 200 of these actions, which are legally binding but may still be subject to legal review. The orders are expected to affect a wide range of issues, including immigration, environmental regulations and corporate diversity policies.
One key move could see Trump launch mass deportations of illegal immigrants. Media reports have suggested that Trump, who has promised to carry out the largest deportation program in US history, will call for raids in several major cities in the early days of his second term.
Investors have been waiting for more clarity on Trump’s plans, particularly their potential impact on inflation pressures and possible interest rate cuts from the Federal Reserve this year. Stock markets will be closed on Monday in observance of the Martin Luther King Jr. Day holiday.
2. TikTok begins to restore services in the US
TikTok began restoring services to 170 million users in the United States on Sunday, as President-elect Donald Trump promised to revive access to the short video platform when he returns to power.
TikTok’s return came just over 14 hours after the service was suspended due to a national security law that required it to divest from its Chinese ownership or close its US operations.
At a rally on Sunday, Trump said “we have to save” the popular app, which has faced scrutiny from U.S. officials over fears it could be used by China’s government to track or propagandize American users.
Before the event, TikTok issued a message saying it was “back in America” and thanked Trump in particular.
Trump has said he would likely give TikTok a 90-day reprieve before the ban takes effect, adding that he would like the United States to “take a 50/50 stake in a joint venture.”
3. Trump’s memecoin takes a hit after his wife Melania launches a rival token
Trump’s new cryptocurrency soared before the inauguration, but lost value after incoming US first lady Melania Trump unveiled her own currency.
“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” Trump wrote in a post on his social media platform Truth Social.
The cryptocurrency industry has been boosted since Trump’s election victory in November, and advocates hope it will help usher in a new era of digital asset adoption. Trump, who previously called it “a scam,” has promised that the United States would be “the crypto capital” of the world once he returns to office.
$Trump memecoins, which started selling at $10 each, were trading at around $70 on Sunday, according to CoinMarketCap. But he trimmed some of these gains after his wife, $Melania’s coin toss.
Meanwhile, Bitcoin hit a new record on Monday, adding to a rally in the price of the world’s best-known cryptocurrency since Trump’s election victory.
4. Earnings this week
Investors hoping for another strong year in U.S. corporate earnings-driven stock markets will have a clearer outlook this week, with a number of companies set to report fourth-quarter earnings.
Reports will be released from streaming giant Netflix (NASDAQ 🙂), healthcare leader Johnson & Johnson (NYSE 🙂), consumer goods powerhouse Procter & Gamble (NYSE 🙂 and credit card issuer. American Express (NYSE:).
Earnings season kicked off last week with big banks posting strong profits, with increased trading and strong stock market performance boosting trading revenue.
Overall, analysts expect companies to post a 10.4% year-on-year increase in fourth-quarter profits, according to LSEG IBES data on Jan. 15, cited by Reuters.
5. Oil crashes
Oil prices fell on Monday, with traders de-risking ahead of Donald Trump’s inauguration.
At 03:51 ET, US crude oil futures (WTI) fell 0.4% to $77.11 per barrel, while the contract fell 0.4% to $80.47 per barrel.
Trump will take the reins of office later Monday and is expected to make a series of political announcements almost immediately. These could include easing restrictions on Russia’s energy sector in exchange for a deal to end the Ukraine war.
Oil is up 10% so far this month, amid concerns about the impact of further Western sanctions on Russian crude.