NEW YORK – Stocks hit all-time highs with investors mapping out Donald Trump’s return to the White House and what his policies will mean for markets and the economy.
The S&P 500 climbed 2 per cent, heading toward its 48th record this year, on bets newly elected president will enact pro-growth policies that will boost Corporate America.
Banks, including Citigroup, JPMorgan Chase & Co and Goldman Sachs Group, rallied as investors wagered that Trump will make good on his promises to lower taxes and reduce regulation.
An exchange-traded fund that tracks the movement of major bank stocks also climbed, putting it on track to reach the highest level in more than two years.
During the campaign, Trump vowed to cut the corporate tax rate to as low as 15 per cent from 21 per cent, and to eliminate 10 regulations for every new one – offering a more attractive environment for banks than his rival Kamala Harris, who had planned to raise corporate taxes.
He also promised to overhaul key regulatory bodies and pledged to fire regulators including Securities and Exchange Commission Chair Gary Gensler.
“We are confident that the regulatory pendulum will swing back somewhat,” Mark Fitzgibbon, an analyst at Piper Sandler, said in a note to clients. “Many bankers would quietly complain to us that their examiners were unreasonable, irrational or simply opaque. We believe this will improve with a more bank-friendly administration.”
Trump’s win adds to a string of good news for US bank bosses, who had already been optimistic in recent months about navigating a falling interest rate environment and the Federal Reserve’s ability to pull off a soft landing for the economy.
Trump’s return to the White House could also mean a win for executives who had been lobbying against the US adopting