As the United States gears up for Trump 2.0, markets and industries are bracing for potential policy changes. The week ended on a positive note for U.S. stocks, marking the first weekly gain of 2025, with a mix of optimism and uncertainty shaping investor behavior.
TikTok Ban Delayed Amid Merger Talks
TikTok announced it is resuming services in the United States after President-elect Trump revealed plans to delay a ban on the platform. He shared the decision on his social media platform, signaling the possibility of executive action on Monday. Meanwhile, discussions about a new merged entity involving TikTok’s U.S. operations, its parent company ByteDance, and new investors have emerged.
Stock Market Ends Week Higher
The U.S. stock market rallied last week, delivering its best performance since the November presidential election. The S&P 500 rose by 2.9%, the Dow Jones Industrial Average gained 3.7%, and the Nasdaq Composite increased by 2.5%. The financial sector played a significant role in this rally, with major banks reporting strong earnings. Goldman Sachs saw a 12% jump in its shares, while JPMorgan Chase rose by 8%. Overall, the financial sector advanced more than 6%, outperforming the broader S&P 500.
The uptick was supported by positive economic data and reduced inflation readings, which fueled optimism about the market’s resilience. All sectors ended the week in green, contributing to a renewed sense of confidence among investors.
Anticipation of Trump’s Policies
Trump’s inauguration on Monday is expected to set the tone for markets in the weeks to come. Investors are closely watching for executive orders related to tariffs, deregulation, and corporate tax policies. These measures could significantly influence market trends and investor sentiment.
The financial sector is anticipated to benefit from Trump’s policies, including potential deregulation, extended tax cuts, and increased consumer and business confidence. Analysts suggest that these factors could drive further growth in the sector.
Global Market Performance
The positive momentum extended beyond the United States. The pan-European Stoxx 600 index rose by 0.69%, while the UK’s FTSE 100 climbed by 1.35% to close at a record high. Mining stocks were a key contributor, bolstered by reports of merger talks between Glencore and Rio Tinto.
TSMC Confident Amid Policy Shift
Taiwan Semiconductor Manufacturing Company (TSMC) remains optimistic about continued support under Trump’s presidency. The company’s CFO expressed confidence that the $6.6 billion in funding promised under the CHIPS and Science Act will remain intact despite Trump’s criticism of the legislation. TSMC’s strong position reflects the delicate balance between U.S. policy and global semiconductor supply chains.
Ceasefire Brings Hope in Middle East
The ceasefire between Israel and Hamas came into effect on Sunday, marking a significant development in the region. Hamas released three female hostages to Israel, with Israel reciprocating by freeing Palestinian prisoners. This exchange is expected to continue in the coming weeks, gradually releasing hostages and prisoners on both sides.
Moving Forward
Markets are navigating a mix of familiar and new uncertainties as Trump prepares to take office. While the past offers insights into potential policy directions, investors remain cautious about the implications of his administration on economic and corporate policies.
Despite risks, the recent rally underscores the market’s ability to adapt. Analysts suggest that Trump 2.0 could provide new momentum for sectors like finance, setting the stage for a dynamic 2025. For now, markets are watching closely and ready to respond to the policies and executive actions shaping the coming years.
