Nothing kills the Trump's momentum. Nothing can, allt least for the next couple of months. It's only the beginning.
What Killed the Trump Rally? Inflation and Political Uncertainties
The Trump rally in the stock market stumbled this past week, in no small part owing to the president-elect's controversial appointments to the incoming administration.After hitting a record just over 6000 on Monday, the S&P 500 index shed a little more than 2% this past week, with a 1.3% drop in Friday's session. The tech-dominated Nasdaq Composite fell even more sharply, losing over 3%, while the Dow Jones industrials managed to lose only 1.2%."The net effect is that the Republicans might be delayed in moving forward on tax legislation unless every member agrees with every provision of a $4 trillion package," says the Strategas team, referring to the renewal of the Tax Cuts and Jobs Act, which expires at the end of 2025. The GOP would probably want to pass an extension of the TCJA in the first half of 2025, before an increase of the debt ceiling, the suspension of which ends on Jan.
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