Trump's election victory sparks record stock market surge while bond investors raise concerns

fool.com

Donald Trump's election victory has led to a significant surge in the stock market, with the Dow Jones Industrial Average rising over 1,500 points, marking its best post-election performance in more than 125 years. Investors are optimistic about potential tax cuts and a pro-growth agenda. However, concerns are growing among bond investors, known as "bond vigilantes," about the rising national debt, which is nearing $35.5 trillion. Trump's policies are expected to add significantly to this debt, with estimates suggesting an increase of $7.75 trillion during his term. As stock prices rise, bond yields have also surged, reaching their highest levels since July. This trend raises concerns about the sustainability of the current bull market, as higher bond yields could indicate increased risk in lending to the government.


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