Donald Trump secured his victory in the U.S. presidential race, and stocks subsequently jumped. That is in part because of the speed at which the result became clear, says Deepak Puri, the Private Bank’s Chief Investment Officer for the Americas. “The elections were a risk event. Elections bring uncertainty, but the memory of 2020 was quite vivid in the investor's psyche,” Deepak says. “The fact that we have a result very quickly has created this relief rally.”
The Federal Reserve also delivered an interest-rate cut, and noted that inflation is now closer to its target level. “The Fed will go where the data leads us” at its next meetings, Deepak says. But markets are likely to remain attuned to the political landscape, as the Biden administration manages its last months and the new Trump administration comes into sharper focus. “The repercussions of the elections are going to be with us for some time to come.”
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