Tariff Shock

Following Donald Trump's conviction on 34 felony counts of falsifying business records, the stock market reaction was muted. Major indexes like the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite showed little immediate movement, suggesting investors are not overly concerned about the verdict's short-term economic impact. Analysts suggest the market's composure stems from the expectation that the conviction won't significantly alter the political landscape or the likelihood of Trump winning the upcoming presidential election. Furthermore, economic fundamentals, such as inflation and interest rate expectations, are currently perceived as having a more significant influence on market performance. Several factors are contributing to this perspective. Firstly, the conviction is widely seen as unlikely to disqualify Trump from running for president. Secondly, markets have largely priced in political uncertainty, and the focus remains on economic data and corporate earnings. Finally, some analysts believe that a Trump presidency would bring both potential benefits (tax cuts, deregulation) and risks (trade wars, geopolitical tensions), creating a mixed outlook that doesn't necessarily warrant a strong market reaction to the conviction alone. Therefore, the market’s subdued response indicates a focus on broader economic issues and a wait-and-see approach regarding the long-term political implications. find the original article here: https://finance.yahoo.com/news/instant-view-investors-react-trump-210107864.html