US Markets Soar to Record Highs Amid Trump’s Tariff Announcements
On November 26, 2024, the US stock markets made an unexpected move. The Dow Jones and S&P 500 soared to record highs, despite President-elect Donald Trump’s announcement of imposing substantial tariffs on imports from Mexico, Canada, and China. The Dow Jones rose by 0.3%, while the S&P 500 and the Nasdaq Composite both gained 0.6%.
Trump’s proposed plan includes a 25% tariff on Canadian and Mexican imports, along with additional tariffs on Chinese goods. These measures, driven by concerns over immigration and drug trafficking, could potentially disrupt established trade relationships under agreements such as the USMCA, impacting the largest US trading partners.
However, investors seemed to focus more on the positive economic indicators and corporate earnings, overlooking the potential trade disruptions. The currency markets had a different reaction, with the US dollar strengthening against the Canadian dollar, Mexican peso, and Chinese yuan following the tariff announcements.
Source: Duncan Williams Asset Management