The Euphoria based in Trump has evaporated from the stock market as recent tariff escalations and disappointing data sparks of growth fears. In addition to the wider markets, certain sectors that are initially expected to perform well under a Trump administration, since the elections are also left behind.
Immediately after Trump’s victory, Small Caps rose, with the Russell 2000 (^Rut) that performed better than the leading market indexes. But the rally was short -lived and the index has now fallen by around 8% since 5 November.
From companies within the Small-CAP index, including regional banks and smaller domestic players, would be expected to benefit from the expected policy of the Trump administration, such as lower taxes and deregulation. However, that policy must still be indicated because rates remain the current priority of the administration.
In the meantime, sectors such as Energy (XLE) and Industrials (XLI) also jumped in the aftermath of Trump’s victory because of the expectations of more mergers and acquisitions, a steeper yield curve and less regulation. Both have fallen around 3%.
Financials (XLF) are the only exception, an increase of approximately 7% since November 5.
And Bitcoin (BTC-usd), one of the largest beneficiaries of the rally after the elections, perhaps lost the most momentum after the first time that $ 100,000 per coin at the end of last year is more than $ 100,000. The largest cryptocurrency has now been exchanged by around $ 85,000, a decrease of around 22% compared to a record high of just over $ 109,000 in mid -January.
In individual stock movements, Trump Media & Technology Group Stock (DJT), who had risen no less than 25% after Trump won the victory over former vice -president Kamala Harris, now with around 50% decrease in that period. On the way to the elections, strategists had categorized the shares as a bet on the elections given the meme-like trading patterns.
DJT is the parent company of the social media platform of Trump, Truth Social, which he often uses to communicate with the public.
And Elon Musk’s Tesla (TSLA) has seen brutal commercial action in recent weeks. The share, which has been closed for the first time since August 2024 under its 200-day advancing average, has fallen by more than 30% since the beginning of the year.
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