Overnight, markets reacted strongly to Donald Trump’s confirmed return to the White House and the GOP’s control of the Senate, with traders now eyeing the House outcome for a potential Republican clean sweep.
The election outcome has driven significant optimism in equity and currency markets, with the prospect of a Trump-aligned Congress fueling expectations for tax cuts, deregulation, and increased fiscal spending. Here’s how major asset classes moved:
If Republicans secure the House, markets anticipate a robust push for the “America First” economic policies Trump campaigned on. A united Congress would likely enable him to enact trade restrictions, curb immigration, and increase infrastructure spending, with broad implications:
If Republicans secure the House, the market may see:
In the coming days, markets will closely monitor House results, as a Republican sweep would reinforce the “America First” agenda, likely driving a bullish equity outlook but increasing Treasury and currency volatility.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.