President-elect Trump’s Tariff Plans and the S&P 500’s Resilience
President-elect Trump made headlines with his announcement of plans to impose tariffs on goods from Canada, Mexico, and China. Despite concerns over these tariffs, the S&P 500 index continues its upward climb, with economists predicting it could reach an impressive 6500 by the end of the year.
The S&P 500’s December Performance and the Possibility of a “Santa Rally”
Historically, the S&P 500 has shown strong performance in December during election years. This trend adds weight to the possibility of a “Santa Rally,” where the index experiences a surge in value towards the end of the year.
President-Elect Trump’s Tariff Pledges and Market Impact
President-Elect Donald Trump’s tariff proposals have had a significant impact on various markets and financial instruments. His plan to apply a 25% tariff on goods from Canada and Mexico, along with an additional 10% tariff on Chinese imports, has led to market volatility.
The currency market has been affected, with currencies like the USD suffering as a result of these tariff announcements. In the stock market, automakers like Ford and General Motors have seen their stock prices decline due to their reliance on interconnected supply chains between the US, Mexico, and Canada.
Economists’ Positive Outlook on the S&P 500
Despite the market volatility caused by tariff concerns, economists remain optimistic about the S&P 500’s performance. A recent poll suggests that the index could hit 6500 by the end of the year, indicating a potential 10% gain in December. This positive outlook is fueled by faith in the traditional “Santa Rally” phenomenon.
Technical Analysis of the S&P 500
From a technical standpoint, the S&P 500 continues its steady rise and impressive performance in 2024. The index is currently testing a key resistance level around 6010, with a long-term target of 6170 in sight. While the 14-period RSI is approaching overbought territory, a pullback is not guaranteed.
In conclusion, despite the uncertainties surrounding President-Elect Trump’s tariff plans, the S&P 500 remains resilient and poised for further growth. The positive outlook from economists and historical trends suggest that the index could see significant gains by the end of the year, making it an attractive investment opportunity for investors.