🎙️ Getting Going

The S&P 500 rose to another record — its 48th in 2024 — after Donald J. Trump was elected as the 47th president of the United States.

Bond yields rose, and the U.S. dollar had its biggest jump since 2020, while bitcoin surpassed a record over $76,000.

On Thursday, we’ll hear from Federal Reserve chair Jerome Powell, who is widely expected to announce an interest rate cut of a quarter-percentage point.

— Matthew & Shawn

Here’s today’s rundown:

Today, we'll discuss the biggest stories in markets:

• Breaking down the strong market reaction to Trump’s win

• After a terminal diagnosis, some final personal finance advice

This, and more, in just 5 minutes to read.

Chart(s) of the Day

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In The News

☁︎ What Trump’s Win Could Mean for Markets, Economy

Donald Trump's victory in the 2024 U.S. presidential election has triggered big movements in financial markets. Here’s what we know and what the election victory could mean for markets in 2025 and beyond. 

Stock market surge

The Dow Jones Industrial Average marked its biggest gain in two years. The S&P 500 and Nasdaq Composite also soared Wednesday.

Bank stocks, which benefited after Trump’s win in 2016, also rose. JPMorgan Chase soared about 10%. Industrial and small-cap firms expected to benefit from continued economic expansion also saw increases. Small caps performed well, too. 

• “For now, investor sentiment is pro-growth, pro-deregulation, and pro-markets,” a chief investment officer told Bloomberg. “There is also an assumption that M&A activity will pickup and that more tax cuts are coming or the existing ones will be extended. This creates a strong backdrop for stocks.”

Bitcoin boom

Bitcoin hit an all-time high above $76,000, up 10% following Trump's pledge to make the U.S. the "crypto capital of the planet.” Bitcoin's previous all-time high was $73,798, which it reached this March.

• Other currencies also rallied. Coinbase, a major exchange, saw its shares leap by over 30% on Wednesday. 

Sector-specific movements

Tesla shares surged ~15%, benefiting from Elon Musk's close alliance with Trump. Renewable energy stocks fell sharply, though, reflecting expectations of policy changes in favor of traditional oil and gas. 

• As one analyst told clients: “With Donald Trump winning the 47th Presidency of the United States, we believe that markets will heavily favor financials, US-based industrials (transports), energy, and crypto today and into year-end. We think more offensive tech outperforms as well with semis outperforming. By style, we’d own value, equal weight, small-cap and year-to-date laggards.”

Tariffs 

Concerns remain about potential inflation and the impact of proposed tariffs on global trade. 

• The Wall Street Journal reported Wednesday: “This time Trump has proposed much higher tariffs—at least 60% on China, and 10% to 20% on everyone else. Such a combination would lift U.S. tariff rates to their highest since the 1930s. And it would come when demand is brisk, supply chains are vulnerable to geopolitical conflict, and memories of inflation are fresh. Wages are growing 3.8% a year, and bonds see future inflation at 2.3%.”

Final thoughts

Investors are betting on Trump's promises of deregulation, tax cuts, and economic expansion. But most of all, markets appear to feel good about the certainty post-election. Most years, stocks rally into year-end after presidential elections. 

“The biggest takeaway from last night is that we received certainty that the market craves,” one strategist remarked. “This will allow both business and consumer confidence to improve. Attention now should shift to the Fed meeting tomorrow. The 10-year is approaching the 4.5% level, that’s the level risk assets ran into some trouble in the last 24 months.”

Read more

More Headlines

📈 Nvidia passes Apple (again) as world’s most valuable company after major run

🥃 Drinkers are pushing back on expensive booze after pandemic-era craze

🚀 Why Bitcoin surged to new record after Trump wins presidency

🚗 Tesla stock soars as Elon Musk looks to benefit from Trump's victory

🏠 Mortgage rates surge higher on Trump victory, causing housing stocks to fall

📱 Most teens spend around 25% of their waking hours using screens

🙏 After a Terminal Illness, Some Final Personal Finance Advice

Jonathan Clements, the longtime personal finance columnist for The Wall Street Journal and HumbleDollar.com, has about one year left to live.

The writer, 61, was diagnosed with a terminal illness that has him reflecting financially on his death. He penned a heartfelt Wall Street Journal column with a few lessons worth highlighting. 

“Ever since I learned I had cancer and might have just a year to live, I’ve been working like crazy to make sure I bequeath a well-organized estate and leave my family in good financial shape,” he wrote. “I’m determined to have as good a death as possible, not least from a financial point of view.”

All in order: To start, he’s organized his estate, held frank discussions with his family, and simplified his financial life by closing accounts, reducing credit cards, and updating beneficiaries. He revised his will and established powers of attorney. Then he decluttered and threw out unnecessary paperwork, ensuring his family isn’t left with an overwhelming amount of work. 

• “All this might seem rather tedious,” he wrote. “But at a time when I’m losing control over my life’s trajectory, it feels good to have control over something, even if it’s just humdrum financial matters.”

Asset management: With his assets, he focused on financial flexibility so his heirs can access funds easily. He forgave a private mortgage to his daughter and reviewed tax implications of his gifts to his heirs with lawyers. 

• He also married quickly to potentially secure survivor benefits for his wife.
  

• “When I’m gone, my family may struggle to figure out what’s important and what’s not, and the best way to avoid that confusion is for me to throw away the unimportant stuff now,” he added.

As for his mindset, he adopted a "cheerful warrior" attitude, making the most of each day. He found purpose in organizing finances during a time of limited control while resisting extravagant spending despite having no need for retirement savings. In other words, he’s decided to maintain his lifelong values of frugality. 

He concluded: “I can’t bring myself to spend with wild abandon. Partly, it’s because every dollar I spend is a dollar that [his family] won’t inherit and that won’t go to charity. But also, after decades of frugality, living large would be deeply uncomfortable. Even at this late stage, I can’t bring myself to throw out the values I’ve lived by for my entire adult life.”

Read more

Quick Poll

On Monday, we asked: Which service would you most want to see added to convenience stores near you?

— Most readers would simply like more fresh food at convenience stores. “More fresh foods and more organic options.”

— Another wrote: “Lower priced food options, instead of overpriced ones!”

See you next time!

That's it for today on We Study Markets!

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