TRG Fast Facts
By TRG Advisors on November 8, 2024
Weekly data-driven insights on the markets and economy
1. The Market has Answers
Since 1980, the three major benchmarks on average experience gains between Election Day and year end.[i] The S&P 500 followed suit of years past showing a 2.3% jump as the results of the highly anticipated 2024 Presidential election concluded. The Dow also rose by 3.2% as well as the Nasdaq showing a 2.7% increase. [ii]
2. Tariffs en route?
As expected, there are still tons of unknowns on how and when Trump’s proposed new tariffs on imported goods might be put into implementation. He has said he would impose a 10% or 20% tariff on all imports and at least 60% on Chinese goods. If these tariffs were put into action, studies show it would result in costs to rise by $3,000 for the average U.S. household.[iii]
3. Crypto Surge
With Trump’s proposed plans to reduce government oversight of the cryptocurrency industry, cryptocurrencies and companies in the space saw wide gains all around. Bitcoin hit an all-time high of more than $75,000 growing 8.5%.[iv]
4. Cuts continuing?
The Fed is expected to cut rates again this Thursday—with the expectation to be around 25 basis points, half of the cut earlier this year. With plans to cut again during their meeting in December, this would show a full percentage point cut this year from its level prior to September, when the federal funds rate was at its highest in longer than 20 years. With the election news, some are concerned that these rate cuts may be less frequent going forward. [v]
5. Gold gone Cold
Much unlike its recent and continuous rise, gold saw a sizable decrease today. The price has gone down nearly 3%, now trading at $2,664.05. That said, the precious metal is still up 28.93% from the beginning of the year. [vi]
6. Like Father, Like Son
LeBron James (39) and son, Bronny (20), became the first father-son duo to play in the NBA during the Los Angeles Lakers’ season opener. This is not only a first for them as teammates but makes them the first father and son to play in the NBA at the same time at all![vii]
[i] Canal, Alexandra, Schafer, Josh and Ferré, Ines, “Stock market today: Dow, Nasdaq, S&P 500 all soar to records after Trump triumphs in election,” Yahoo!Finance, November 6, 2024, https://finance.yahoo.com/news/live/stock-market-today-dow-nasdaq-sp-500-all-soar-to-records-after-trump-triumphs-in-election-210032237.html. Accessed November 6, 2024.
[ii] Hayes, Christopher and Harring, Alex, “What the stock market typically does after the U.S. election, according to history,” CNBC, November 4, 2024, https://www.cnbc.com/2024/11/04/what-the-stock-market-typically-does-after-the-us-election-according-to-history.html. Accessed November 6, 2024.
[iii] Iacurci, Greg, “Here’s what President-elect Trump’s tariff plan may mean for your wallet,” CNBC, November 6, 2024, https://www.cnbc.com/2024/11/06/here-what-president-elect-trumps-tariff-plan-may-mean-for-your-wallet.html. Accessed November 6, 2024.
[iv] Wile, Rob, “’Trump trade’ takes off: Tesla, Bitcoin and Truth Social boom in election aftermath,” NBC News, November 6, 2024, https://www.nbcnews.com/business/business-news/trump-trade-takes-tesla-bitcoin-truth-social-boom-election-aftermath-rcna178927. Accessed November 6, 2024.
[v] Picchi, Aimee, “The Federal Reserve is making a rate cut decision on Thursday. Here’s the impact on your money,” Money Watch, November 6, 2024, https://www.cbsnews.com/news/fed-meeting-rate-cut-2024-interest-rate-decision/. Accessed November 6, 2024.[vi] Dong, Tony and Powell, Farran, “Gold price today: Gold is down 2.94%, trading at $2,664.05,” USA Today, November 6, 2024, https://www.usatoday.com/money/blueprint/investing/gold-price-11-06-2024/. Accessed November 6, 2024.
[vii] Beacham, Greg, “LeBron and Bronny James make history as the NBA’s first father-son duo to play together,” NBA, October 22, 2024, https://www.nba.com/news/lebron-bronny-james-make-history-play-together. Accessed November 6, 2024.