Stock Market Momentum Slows After Trump Rally Surge: What’s Next?
The initial boost in stock market momentum, often referred to as the "Trump rally," emerged from investor optimism about pro-growth policies, tax cuts, and deregulation under Donald Trump’s administration. Investors were encouraged by the prospect of a business-friendly environment, hoping for reduced corporate taxes, streamlined regulations, and stimulus spending on infrastructure—all of which have historically driven market gains. However, recent market behavior has shown signs of losing this upward momentum. There are several reasons behind this cooling period: 1. Policy Implementation Delays: While the initial optimism was high, the actual execution of these policies has faced delays due to legislative hurdles. This has left investors wondering if the anticipated benefits might be slower to materialize than initially hoped. 2. Interest Rate Concerns: The Federal Reserve’s interest rate hikes have also played a significant role. Rising rates tend to increase th...