A Note On The Stock Market

1051 WordsApr 13, 20175 Pages
Introduction The stock market has seen a lot of fluctuation during the months of February, March, and beginning of April. This can be noted to the new President in office, Mr. Trump. He has spent a great amount of his life as a businessman, and many investors saw this as a positive omen as to what would happen to the stock market and their investments. In fact, right before the presidential election in November, stock prices and indexes plunged as uncertainty in whether he or Mrs. Clinton would take office in such a close presidential race. After the announcement that there was a projected win for Mr. Trump, these stock prices and indexes that recently plummeted, increase rapidly; even to a price higher than before the uncertainty of the…show more content…
He signed executive orders that limited new regulations and was calling for review of Dodd-Frank regulation of financial firms. Companies that benefitted most from these deregulations contributed to most of the growth. The first quarterly earnings after the election showed growth and many companies plan to spend money on new equipment and hiring. Companies setting out to hire more employees lowered the employment rate, which continue the stock market growth. The hallmark of stock indexes increasing was on Thursday, March 2nd when the DIJA surged over 300 points. The S&P 500 rose 32.32 points and the Nasdaq rose 78.59 points as well. Investors showed optimism in the President to deregulate more and passing tax policies that are better for corporations, as well as hopes that the federal reserve will increase interest rates. The rise came after President Trump spoke to Congress with an optimistic tone; however, he offered few details for his plans. These events also caused a rise in the treasury interest rates on ten-year treasury notes, causing bank stocks like J.P. Morgan Chase and Bank of America to increase in price as well. The promising of the Trump’s presidency has many investors optimistic, but slightly concerned by the high surge. Following the surge in stock indexes, the Federal Reserve raised interest rates. Before they official rose rates, there were many statements from officials about a strong possibility that interest rates would rise. This

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