Donald Trump’s presidential victory has sparked significant shifts in financial markets as investors anticipate tax cuts and looser regulations from his administration. Large-cap US stocks saw an unprecedented $44.1 billion inflow last week, the largest on record, while financial funds received $2.6 billion, the biggest inflow since January 2022. In contrast, gold experienced $1.6 billion in outflows, the steepest weekly selling since July 2022.
Money-market fund assets reached an all-time high of $6.7 trillion, reflecting renewed investor interest. Cryptocurrency funds also saw their biggest week of inflows on record, taking in $6 billion as traders looked ahead to potentially lighter regulation under Trump’s administration.
Market inflows after Trump victory
Analysts at Bank of America, led by Chief Investment Strategist Michael Hartnett of BofA Global Research, have been closely monitoring these significant market movements. Trump’s victory has brought a whirlwind of activity across various financial assets, driven by the anticipation of economic policy changes. The future of these trends remains uncertain as the new administration begins to implement its policies.
Investors are eagerly watching to see how Trump’s proposed tax cuts and deregulation efforts will impact the economy and financial markets. The coming months will be crucial in determining the long-term effects of these policy changes on various sectors and asset classes. As the Trump administration takes office, market participants will be closely monitoring any new developments or announcements that could further influence investor sentiment and drive market movements.
