After months of intense campaigning, Donald Trump has officially become the 47th President of the United States of America. His victory could bring significant changes to global markets, and investors are already monitoring the potential economic impacts of the new administration in key sectors – from energy to technology. How will the American market react to the new president? Predictions are offered by the analyst team at Freedom24.
2024 was an exceptional year in terms of global political changes, being an election year in 70 countries around the world. Its crowning achievement was the presidential elections in the US. For months, the media, and analysts speculated who would become the 47th President of the United States and how his policies would affect the global economy. Ultimately, Donald Trump returns to the White House, and the finale of the thrilling campaign raised new questions for investors about the future.
More Holidays with Trump
The world is wondering how the new administration will affect the private sector and the US’s trade relations with other countries. For many companies, this means a return to protectionism, typical of Donald Trump’s previous term. Experts predict distinct changes in sectors such as trade, energy, defense, and technology, that fall in line with the key plans of the new president. Trump, known for his critical stance towards China, may reintroduce trade restrictions and additional tariffs.
According to Freedom24 analysts, firms dependent on global supply chains will feel the impacts the most as trade tensions and stricter regulations are likely to contribute to increased volatility. Renewed tariffs and restrictions may harm technology companies operating in international markets, particularly those with Chinese capital.
However, companies relying on traditional energy sources can expect positive changes. Trump clearly emphasizes his positive stance towards the oil and gas production sector. Freedom24 experts predict that if the new president focuses on developing domestic production and loosening environmental regulations, shares of businesses related to oil and gas may rise. Meanwhile, ‘green’ energy companies could suffer if Trump follows through with plans to eliminate tax breaks and subsidies for electric vehicle manufacturers.
The defense sector could also profit, as the Trump administration declares an increase in security spending. This could significantly contribute to the growth in government contracts. Moreover, the new president’s promises concerning tightening immigration policy may also favor growth in the private prison sector – an industry unusual from a European perspective but operating in the US on market terms. Interestingly, Trump’s new favorable position on cryptocurrencies may lead to a rise in the shares of related companies. Donald Trump has moved away from his previous skepticism and declared his desire to make the US the “world capital of cryptocurrencies.”
The Coming Months will be Marked by Changes
We are facing several months full of uncertainty, however, the new administration in the White House is already influencing economic forecasts for 2025, setting the direction for global markets. Investors will have to demonstrate adaptability and closely monitor both the president’s decisions and key international events that can shape market trends and impact financial stability around the world.
Source: https://managerplus.pl/donald-trump-wraca-do-bialego-domu-co-jego-prezydentura-oznacza-dla-globalnych-rynkow-88337
