US Stocks Draw Biggest Inflow Since June on the Day of Trump Win

Published On Nov 8, 2024, 4:43 AM

US equity funds saw a significant inflow of $20 billion on the day of Donald Trump's electoral victory, marking the largest single-day influx since June. Small-cap stocks attracted the most investments, benefiting from Trump's anticipated protectionist policies. The broader market is also responding positively, with the S&P 500 Index hitting record highs this week following the election and a recent Federal Reserve interest rate cut. Despite optimism regarding lower corporate taxes under Trump's leadership, concerns remain about inflation potentially driven by tariffs and immigration policies.

Stock Forecasts

The significant inflow into U.S. equities suggests strong investor confidence following Trump's election victory. This sentiment is likely to bolster stock prices, particularly in sectors expected to benefit from lower corporate taxes and infrastructure spending. However, the potential for inflation due to tariffs may temper some of this growth.

With small-cap stocks receiving the largest inflow, it indicates a market shift towards stocks that may thrive under Trump's policies. This could lead to sustained interest in these stocks, driving their prices higher in the near term.

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