Global Markets Rebound After Trump’s Inauguration Week

Global markets saw significant movement in the past week, fueled by policy announcements following US President Trump’s inauguration. US markets extended their rally, with the Dow Jones rising 2.48%, the S&P 500 up 2.04%, and the Nasdaq gaining 2.16%. Industrial and tech stocks led the S&P 500, advancing 4.18% and 3.69%, respectively, as Trump emphasized AI infrastructure investment. 

In Europe, the Stoxx 600 climbed 1.84%, with the DAX up 2.43%, the CAC 40 rising 2.37%, and the FTSE 100 gaining 0.71%. Industrial stocks outperformed, driven by defense spending and AI-related investments. Luxury goods stocks also saw strong gains, with LVMH up 4.43% and Hermès climbing 6.89%, supported by easing tariffs on China and Beijing’s economic stimulus.  

Currencies reflected a softened dollar, boosting the euro and yen. The Bank of Japan raised rates to 0.5%, strengthening the yen as USD/JPY fell 0.6% to just above 155. Japan’s Nikkei 225 gained 3.9% for the week despite a pullback after the rate decision.  

What Does This Mean for Me?

In commodities, gold neared an all-time high on haven demand, while oil prices slid due to Trump’s push for increased US production. Bitcoin reached a record high before retreating, reflecting volatile investor sentiment.  

Asian markets also showed resilience, with China’s Hang Seng Index up over 2% after policy support, and pension funds boosting A-share investments. Amid optimism, caution lingered over potential trade wars and inflationary pressures from US tariff threats, signaling a complex road ahead for global markets.