Consumer alert: Stocks rise after Trump’s win, but will it be a win for your wallet?

Stock prices are rising on Wednesday following Donald Trump’s victory in the 2024 presidential election.

The Dow Jones has risen more than 1,500 points, marking the first time it has gained more than a thousand points in a single day since November 2022. The Nasdaq rose 3% to 18,983.47, and the S&P 500 rose 2.5% to 5,929.04, according to the Associated Press. Press..

Historically, the market recovers the day after Election Day. But there were some clear winners on Wednesday, all indications that investors think Trump’s policies will impact the economy.

All three major indexes hit record highs, with Tesla shares leading the way. Ironically, Trump’s promised cuts to government subsidies for the electric car industry will likely be a major blow to the sector as a whole, but investors are betting Tesla will have an advantage.

Bank stocks also soared as investors believed Trump’s policies would strengthen the economy, causing consumers to borrow more and pay more interest. However, bond yields have also risen, indicating that investors are betting on coming inflation.

“With what appears to be the certainty of Trump’s tax cut continuation, we will inject the U.S. economy with more money, which would be inflationary,” said Mark Hamrick, Bankrate’s senior economic analyst.

He added: “Tariffs, depending on how widely they are applied and at what level, would increase price concerns because you are essentially adding a tax to items imported into the United States, and we are completely dependent on global supply chains . .”

Deanna Dewberry, News10NBC: “What should I do as an individual consumer to prepare for the financial changes that await us?”

Mark Hamrick, bank rate: “Save for your retirement. save for emergencies. pay off debts. And if we end up in an environment where interest rates don’t go as low as we previously thought, that means the cost of borrowing, such as with credit card debt, will either remain high, potentially go higher, or won’t rise. drop as much as we had hoped.”

There is more irony in that. What might be good for your 401(k) could hurt when you go to the grocery store. The Federal Reserve has raised interest rates to slow lending, stop the flow of money into the economy and slow inflation. Pumping money into the economy goes against these efforts.

So while it may seem counterintuitive, too much growth may not be a winner for your wallet as the country still tries to curb inflation.

In the short term, Hamrick says he believes the economy will remain the courts – healthy, good growth, low unemployment. But you should prepare for the possibility that inflation will rise again – and that interest rates won’t fall as quickly as you might have hoped.

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