Following Donald Trump's inauguration, the financial markets saw a period of significant volatility and optimism. Investors responded to his promises of tax cuts, deregulation, and infrastructure spending, which many believed would spur economic growth. Stock markets surged, especially in sectors like financials, defense, and infrastructure. The “Trump rally,” as it was called, reflected confidence in a pro-business agenda.
The market was shaped by a blend of optimism about pro-growth policies and apprehension about the broader risks associated with his unconventional approach to governance. Keeping an eye on policy developments and global events was essential for navigating this post-inaugural market landscape.