Jeremy Siegel, a finance professor at the Wharton School at the University of Pennsylvania, says President-elect Donald Trump’s pro-business policies could give the stock market a bigger boost than any previous administration.
“President-elect Trump is the most pro-stock president in our nation’s history,” Siegel said Monday on CNBC’s “Squawk Box.” “He measured his success in his first term by how well the stock market did. It seems to me very unlikely that he would implement policies that would negatively impact the stock market. ”
Markets have already reached new heights in the wake of Trump’s election victory, as investors bet that his promises to cut taxes and deregulate will boost growth and benefit risk assets.
The S&P 500 index rose 4.66% last week, its best week since November 2023 and above 6,000 for the first time in history. The blue-chip Dow Jones Industrial Average also surpassed 44,000, a new post-election milestone.
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Investments, seen as the biggest beneficiary under the Trump administration, exploded this week.
Shares of Tesla, whose CEO Elon Musk is a prominent supporter of President Trump, soared 29%, returning the company to a market cap of $1 trillion. Bank stocks such as JPMorgan Chase and Wells Fargo also rose significantly. Bitcoin continued to hit new all-time highs as traders expected regulations to ease under President Trump.
Siegel believes most of the corporate tax cuts that started in 2017 during Trump’s first term are likely to be extended.
“While the extension of the 2017 tax cuts looks like a near success, extending them to all other tax cuts will undoubtedly be much more difficult,” Siegel said.
Still, the president-elect’s trade policies, including his pledge to impose hefty tariffs on trading partners, will hurt growth at a time when the Federal Reserve has spent more than two years raising interest rates to curb price increases. and could fuel inflationary pressures.
