U.S. Markets Catch a Bit of a Trump Trade Tumble
After the election buzz, U.S. stocks took a quick step back from the “Trump Trade” rally, as investors kept their eye on the new administration’s playbook.
Sector Show‑down
- Financials & Energy – Still dancing in the sun; hopes of deregulation and friendly merger approvals keep the beat alive.
- Bitcoin – The digital gold rush keeps spiking; a 32.46% jump since the vote as traders fret that the Fed might loosen crypto rules.
- Health Care – Falling 4.79% on a Bloomberg hit about Robert F. Kennedy Jr. potentially heading HHS; the idea of a pharma watchdog is a spell‑bound buzz.
- EVs – Power‑ups for Tesla (42.63% rally) but a wind‑fall follows when the $7,500 green loan bumps. Rivian’s shares took a bite, dropping 14.3%.
Crypto Crash or Cheer? Bitcoin’s 32% Surge
The allure of a looser regulation feeds a bull we can’t quite contain. Speculators live for the hype while regulators keep their eyes on the horizon.
Health Care: A Spotlight Check
When a celebrity pharmacist‑critic potentially gets the mic for HHS, investors worry about a stricter drug-cleanup. It’s a domino effect that drops biotech and pharma half a dozen points.
EV Mania: Tesla’s Rocket Then Hangback
Trump hinted at a role for Elon Musk—stars aligned—putting Tesla through the roof. But when the consumer tax‑credit vanishes like a broken windshield, the market hiccups and Rivian takes a plunge.
Economic Numbers: A Mixed Bag
October inflation ticked up just 0.2% overall, core 0.3%—pretty much on pace. But housing costs pushed headline inflation from 2.4% to 2.6%, the first uptick since March.
Bond Market: The Yields Party
The 10‑year Treasury jumped to a five‑month high of 4.51%. Corporate bonds filled the stage heavily, but spreads widened as more issuers jumped in. Municipal bonds stayed steady thanks to a loud second‑hand market.
Europe’s Unsteady Dance
The STOXX Europe 600 slipped 0.69% on Thursday, with fears of Trump’s trade chops and Germany’s political wobble dragging the mood. The spread across Europe:
- France’s CAC 40 fell 0.94%.
- Germany’s DAX held its ground.
- Italy’s FTSE MIB flexed with a 1.11% gain.
UK’s Slow‑Motion Growth
GDP slowed to 0.1% in Q3, a dip from 0.5% the previous quarter and a touch below the 0.2% consensus. Manufacturing and wage growth areas were the weak spots.
Eurozone’s “Hold Your Horses” Move
Q3 GDP at 0.4% keeps the job‑market steady, with employment up 0.2%. The ECB cut rates by 0.25% to keep inflation in check without pulling the rug.
Japan: Exporters in a Yellow‑Spring Situation
The Nikkei fell 2.2%, while TOPIX slid 1.1%. With U.S. tariffs looming, our export‑heavy friends felt the pinch. The yen dipped to JPY 155, easing exporters but tightening inflation worries.
China’s Battle With Deflation
Shanghai Composite down 3.52%, CSI 300 down 3.29%, and Hong Kong’s Hang Seng companies a staggering 6.28% drop. Deflationary spells roped in private consumption, but retail sales jumped 4.8% while industrial output rose 5.3%—a glimmer of resilience.
Wrap‑up: The Global Market Juggles Policy Play
While U.S. sectors kept dancing to policy beats, Europe’s slow waltz and Asian markets confronted external and internal challenges. It’s a chaotic yet fascinating show.
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