If Trump slaps a 60% tariff on phones imported from Chinese factories, the phone makers will pass the increase onto the consumer
The US stock market soared and the Treasury market slumped on Wednesday (Nov 6) – the first day after the presidential election – as traders anticipated that the second Donald Trump administration would be even more pro-business than the first, with expectations of lower taxes, a greater protection of US industry and deregulation on all fronts.
The Treasury market often acts as the stock market’s older and more sober brother, and the same lavish handouts to industry and taxpayers that the stock market was celebrating caused bond investors to fret about how Trump’s administration was going to pay for it all.
Several categories of stocks were particularly strong. There were the oil producers, such as Exxon Mobil, who will benefit from a likely rollback of environmental regulations.