Jeremy Siegel, a finance professor at the University of Pennsylvania’s Wharton School of Business, said the stock market could get a bigger boost than any previous administration due to President-elect Trump’s pro-business policies.
“President-elect Trump is the most pro-stock market president in our history,” Siegel said Monday on CNBC’s “Squawk Box.” “He measures the success of his first term by the performance of the stock market. You “You know, in my opinion, he’s unlikely to implement policies that are bad for the stock market.”
Market reaction to Trump’s election has reached new heights as investors bet that his promises of tax cuts and deregulation will boost economic growth and benefit risk assets.
The S&P 500 surged 4.66% last week, its best week since November 2023, and topped 6,000 points for the first time ever. The blue-chip Dow Jones Industrial Average also climbed to a new milestone of 44,000 points after the election.
S&P 500 Index
Investments seen as the biggest beneficiary of Trump’s presidency surged this week.
Tesla, whose CEO Elon Musk is an important supporter of Trump, soared 29%, bringing the company’s market value back to $1 trillion. Bank stocks such as JPMorgan Chase and Wells Fargo also rose sharply. Bitcoin continues to hit all-time highs as traders see looser regulations under Trump.
Siegel believes the corporate tax cuts implemented during Trump’s first term in 2017 are likely to be extended.
“I think extending the 2017 tax cuts looks very successful, but extending all the other tax cuts will certainly be much more difficult,” Siegel said.
Still, the president-elect’s trade policies, including his vow to impose steep tariffs on trading partners, could hurt economic growth and exacerbate inflationary pressures at a time when the Fed has spent more than two years raising interest rates to curb rising prices. .
About The Author
