However, stocks regained their footing as many expect Trump will make good on his campaign promises of lowering corporate taxes, cut regulation and increase fiscal spending.
“The market finally found a catalyst to move higher—stocks were seemingly stuck,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told the Wall Street Journal.
Strong fundamentals are also supporting the market’s strength, with improving economic data in recent weeks, along with upbeat fourth quarter earnings results, bolstering market sentiment. According to Thomson Reuters, Q4 S&P 500 company earnings are expected to be on pace for their strongest in nine quarters.
“What is underlying this whole Trump rhetoric is that fundamentals in the world, including the U.S., are getting better,” Schutte added.
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