Wall Street closes the month of November positively marked by the victory of the former Republican president Donald Trump in the United States elections and the subsequent preparing investors to benefit from the economic policies of their future administration.
After the Thanksgiving holiday this past Thursday, in which the markets did not open, and the short session this Friday, the Dow Jones Industrial Average rose 6.34% in the month, to 44,910 points; The S&P 500 rose 3.42% to 6,032 points, and the Nasdaq rose 2.7% to 19,218 points.
According to analysts, the main driving factor has been Trump’s victory in the November 5 elections, which has led to days of post-election surge due to the markets’ favorable perception of his promises to lower taxes and dismantle regulations.
For now, Wall Street ignores Trump’s protectionist plans – tariffs on imports that would fuel the deficit and affect supply chains, with the consequent increase in prices – and trusts in the seriousness of its chosen one for the Treasury Department. , tycoon Scott Bessent.
Investors have been buying stocks favorable to that ‘Trump effect’ and selling others that do not have a good outlook: the best example of the former is contained in the Russell 2000 index, which brings together small companies and which this month rose a cumulative 8.79% after breaking several records.
The electric vehicle manufacturer Tesla, they Elon Musk, who will become part of the future Trump Government, earns 33% monthly.
The sectors that have increased the most are consumer (9.89%), financial (9.82%) and industrial (5.60%), while health fell 1.29%, according to the Fidelity firm.
Highlights the stock market moderation of the ‘Magnificent Seven’ of technology, which have had large quarterly results but also large expenses, and over which the shadow of a bubble usually hangs over. Nvidia, the leader in Artificial Intelligence, loses 2.1% monthly.
They are also still in the spotlight the Federal Reserve (Fed) and inflation and employment data; According to the FedWatch tool, the market believes it is more likely that the central bank will dictate a 25 basis point rate cut at the end of its December meeting, the last of the year.
The latest GDP data and the personal consumption expenditure index (PCE), a measure of inflation tracked by the Fed, have not provided any major surprises, and experts are concerned that progress is stalling and that this will force the declines to slow down. of the types.
In other markets, Texas oil loses around 7% in November and stands at around $68.5 per barrel as the perception of geopolitical risk in the Middle East reduces with the recent ceasefire in Lebanon.
Bitcoin, which has also risen sharply since Trump’s victory, is approaching a milestone of $100,000 due to the perception of greater laxity from the next Republican Administration, as opposed to the regulator’s current heavy-handed policy in the cryptocurrency sector.
(With information from EFE)
