A meteoric rise in financial markets
The post-election era has taken a nosedive Wall Street in unprecedented excitement. Since Donald Trump’s victory, stock market indices have experienced a dizzying rise. THE S&P 500 crossed a historic threshold, exceeding 6000 points. In the space of a week, the markets recorded spectacular increases of 6 to 7%, an unprecedented rate in recent history.
This euphoria can be explained by the economic promises made during the campaign, particularly in terms of taxation and deregulation. For investors, a real financial windfall is expected, fueling a general climate of optimism.
Financial professionals on the front lines
The big winners from this dynamic are the players in the financial sector. In New York, bonuses are exploding, reaching unprecedented levels. Major banks and companies are forecasting increases of 35 to 40% in premiums, a boon for traders and deal makers. The latter, paid largely by commission, take full advantage of the acceleration of transactions.
Even retirees are doing well, thanks to funded pensions indexed to the markets. In two decades, their pensions have doubled, a considerable advantage in an environment where each rise in indices strengthens their purchasing power.
Economic promises under close surveillance
However, this frenzy is based on anticipations. Trump’s economic program, with its protectionist measures and immigration restrictions, raises questions. While tax cuts and deregulation promise to boost growth, risks of inflation and labor market tensions are on the horizon.
The introduction of customs taxes, aimed at protecting American industry, could lead to a surge in consumer prices. Nearly 60% of products consumed in the United States are imported, a dependence that makes the market sensitive to tariff measures.
Technology: a sector under pressure
The big tech American economy, the essential engine of growth, also finds itself in the spotlight. Fears of international reprisals could slow down the expansion of this strategic sector. In a context of globalization, technology companies fear trade barriers that could disrupt their development.
Prosperity on hold?
Faced with these uncertainties, one question remains: how long can this euphoria last? The markets, buoyed by optimistic expectations, seem unfazed for the moment. But the persistence of this dynamic will depend on the government’s ability to translate its ambitions into concrete results, without compromising economic stability.
Between promises of prosperity and inflationary threats, Wall Street is playing a high-risk game. The balance between growth and inflation will be the major challenge of the months to come.
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