Biggest Driver of Market is Trump’s Implementation of Plans

The biggest market driver in the first weeks of the Trump administration will be just how efficiently it implements its plans, some strategists say.

The markets vacillated Friday around President Donald Trump’s inauguration. Major U.S. equity markets opened and closed in the green but endured choppy trading throughout the session, falling during the inauguration speech. Trump struck an isolationist tone, declaring “America first” and saying “protection will lead to great prosperity and strength.”

At approximately 20 minutes past noon, in the middle of Trump’s speech, an investor appeared to sell 55,000 S&P 500 E-mini futures contracts (about $6 billion). Stocks neared lows of the trading session. The price of gold edged higher, at one point piercing the $1,214 level. And it appeared the rally U.S. equities had seen since Election Day — the “Trump rally” — was on shaky ground.

Over the next few weeks, the markets’ performance will hinge on the Trump administration’s success in carrying out promises like tax cuts and the repeal of the Affordable Care Act, according to Gina Sanchez, CEO of Chantico Global.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza