US stock market on the rise as investors react to Trump’s election win

Stocks continue to climb this week following the re-election of Donald Trump, though the surge may not be sustained.

WILMINGTON, NC (WWAY) — The US stock market opened higher this week as investors prepare for President-Elect Donald Trump’s return to the White House. 

Investors signaling optimism about decreased corporate taxes and regulations under a second Trump presidency. This comes as the Federal Reserve cut interest rates by a quarter point last week.

Bitcoin also trading significantly higher, topping 90 thousand per Bitcoin as of Wednesday afternoon. 

Mouhcine Guettabi teaches economics at the University of North Carolina Wilmington. He said the fluctuation in the market is largely a reaction to which sectors could benefit from Trump’s proposed policies. 

“The money is typically following where they think policy changes are potentially going to happen or sectors that will potentially benefit from deregulation or from lower taxes. And the ones who are not benefiting from those policies are seeing money move out of them,” Guettabi explained. 

Based on Trump’s outlined politics, sectors that could see a boost in the coming weeks include defense, oil and gas, while renewable energy markets have been trading about the same or lower when compared to last week. 

CEO of Falcon Wealth Planning Gabriel Shahin feels those shifts are normal and reflect a healthy market. 

“Volatility is normal and healthy. I look at it as a heartbeat. It needs to have the ebbs and flows, the ups and downs. And that’s a normal occurrence, it could be just from a normal rebalancing that’s taking place. So we are expecting very high levels of volatility in the early part of next year, which conveniently is during the inauguration,” Shahin said. 

Guetabbi added that although markets at large are on the rise, he’s doubtful that sharp increase will stick in the long term. 

“When elected officials, whether at the gubernatorial level or the presidential level have more pro-business policies, that tends to translate into a little bit of a short-term euphoria. That’s kind of what we’re seeing in the stock market this time around,” Guettabi said.