The stock market is recording its strongest month this year following President-elect Donald Trump’s victory in the 2024 election, reflecting investor optimism about the economic outlook under the incoming administration.
The Wall Street Journal reported Friday that U.S. markets rallied sharply in November, with major indexes seeing significant gains. The S&P 500 was on track to close at a record high and achieve its best monthly performance of the year, while the Dow Jones Industrial Average marked its largest percentage gain since late 2023. Small-cap stocks, represented by the Russell 2000, saw gains exceeding 11% for the month.
Trump’s win has buoyed investor confidence, with markets betting that his proposed tax cuts and deregulation policies will boost corporate profits and drive economic growth. Concerns over Trump’s trade policy, including potential tariffs, have been largely ignored by equity traders, though specific sectors such as automotive stocks have faced slight declines.
The rally builds on immediate market reactions to Trump’s election night victory. U.S. stocks saw their best single-day performance since 2022, with the dollar experiencing its largest one-day rise since 2020. Bond yields also surged, signaling optimism in economic growth prospects.
The stock market has maintained an upward trajectory for much of the past three years, but economic pain points such as inflation have weighed heavily on American households. Rising prices for essentials like housing, gasoline, and groceries have eroded real wages, exacerbating financial pressures.
The “Misery Index,” which combines unemployment and inflation rates, saw historic lows during Trump’s first term, reaching its best levels since the Eisenhower administration. Analysts point to the economic struggles under President Joe Biden as a key factor in Trump’s decisive election victory this month.
Investors and markets are now looking ahead, anticipating a return to policies that prioritize tax relief, deregulation, and pro-business initiatives, all hallmarks of Trump’s first term in office.