Trump Returns to the White House Next Week. How Are Investors Preparing? | Global News Avenue

Markets were active on Friday, the final trading day before Donald Trump’s inauguration on Monday, but there were some signs of nervousness on Wall Street.

The stock market is on track This is the best week since the election results in early November Drive stock market soarwhile Bitcoin jumped to its highest level in a month.

A triple Republican victory in Washington – control of both chambers of Congress and the White House – is set to come on Monday and is expected to usher in a raft of deregulation, tax breaks and other business-friendly policies.

Since his re-election, Trump’s vows to support blockchain technology, as well as his personal and business ties to the cryptocurrency industry, have driven up cryptocurrency prices. Bitcoin price (Bitcoin USD) surged above $105,000 on Friday, while lesser-known coins also gained.

Other “Trump trades” were also rising Friday. Shares of Trump Media Technology Group (DJT), which can be considered a proxy for the president-elect’s popularity, rose about 2%, and Increased by more than 20% since the beginning of the year. Tesla stock (Tesla), whose CEO Elon Musk has become one of Trump’s closest advisers, saw its shares rise 6% on Friday, pushing its post-election gains to 75%.

Some investors wary of Trump 2.0

Investor enthusiasm for Trump 2.0 is unclear. For months, Wall Street has grappled with uncertainty about how Trump’s trade and immigration policies will affect inflation. Economists generally believe his threatened tariffs and deportations will exacerbating inflation and force the Fed keep interest rates high.

Trump’s advisers signaled he would take action, easing some of the market’s concerns. A more cautious approach More so than his campaign rhetoric suggested.

Still, markets are likely to be volatile next week as Trump issues a raft of executive orders. this CBOE Volatility IndexThe VIX index has fallen steadily this week, rising to around 16 on Friday, as Wall Street cheered reassuring inflation data. But VIX options volume was above average on Thursday, and the most traded contract — VIX Index 18, which expires on Jan. 22 — could mean traders Volatility is expected to rebound next week.

Retail investors are also showing some caution heading into the first week of Trump 2.0. Data from Vanda Research as of January 14 show that retail investors rushed to buy cryptocurrency stocks and DJT in the weeks after Trump’s victory, but buying volume has been modest in the past few weeks. To be sure, uncertainty about the future of inflation and interest rates has loomed over the stock market since the start of the year, and retail traders may have been waiting until this week’s inflation data to pile into stocks.