Trump’s Economic Legacy: A Strong Start
As the curtain falls on Donald Trump’s first term, the stock market’s performance takes center stage. The former president frequently touted the market’s success as a benchmark of his administration’s accomplishments. And, judging by today’s numbers, he might just get an early thumbs-up from investors.
Market Momentum Builds
The S&P 500 is on the rise, with a staggering 410 stocks posting one-day gains in afternoon trading. This means a remarkable 80% of stocks are trending upward, a phenomenon Wall Street insiders call “good breadth.” This broad-based rally could be seen as a vote of confidence in the new administration.
A Gauge of Success
During his tenure, Trump often cited the stock market’s performance as a daily measure of his administration’s success. With the S&P 500’s strong showing, he might argue that his economic policies are bearing fruit. Whether this momentum sustains remains to be seen, but for now, the market seems to be giving Trump’s legacy a nod of approval.
Breadth: The Key to Market Health
In Wall Street parlance, “breadth” refers to the number of stocks participating in a market rally. A broad-based rally, like the one we’re seeing today, indicates a healthy market. With more than 8 out of 10 stocks rising, investors are betting on a strong economic recovery. This could be a promising sign for the new administration, as it looks to build on Trump’s economic legacy.
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