Meanwhile, the 10-year government bond is rising. Advocates believe Trump’s desire to raise tariffs and cut taxes could drive up inflation, which could slow the pace of interest rate cuts by the Federal Reserve.

“While overall, we think that in the short term, a Trump victory will mean higher inflation compared to the status quo with Harris, but slower growth (possibly reaching 0.5 percentage points of GDP in 2025 and 2026) reduce),” says TD’s head of global strategy Rich. Kelley wrote. “On FOMC policy, we think the Fed will continue to ease this year but will likely pause in the first half of 2025, pending a better picture of the impact of the new administration’s policies on the inflation and growth.”

Here’s what Wall Street said in the opening bid on some key topics in the wake of Trump’s historic victory.

“The Fed is important, but probably not as important as before. Markets are still pricing in a greater than 90% chance of a rate cut. I think what’s actually happening has more to do with the policies that come on top of that and what that means for growth. What does this mean for inflation and interest rates? Looking at this all together, it probably means that whatever path the Fed was on before, they’ll probably slow down a little bit once we have a little stronger growth. a little more inflation. But overall, I would prefer an economy that is strong, that is supporting earnings, over an economy that needs more rate cuts because it is weakening.”

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“Tesla was one of the short films I proposed last week if Harris had won. Obviously that’s not going to happen. It’s all about Musk and what Musk is going to get. And if Musk gets this role in a Department of Government Efficiency , you sort out the whole self-driving thing, and then that finally becomes something that you can say is very different and valuable about Tesla.

“I suspect this is probably boosterism, and it won’t be long-term. There are some fantastic things that could happen for Musk in a new administration. And one of the things I joked about last week is Imagine that in Trump’s second year, Trump comes in with his undoubted skills and saves the ailing Boeing. Boeing joins Musk’s SpaceX in creating something new and very exciting.”

“Definitely buy (the ‘Magnificent 7’, which consists of Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta and Tesla), absolutely 100%. I mean, that’s pretty much the only area where there’s a strong presence anywhere With earnings growth in the world, I don’t see earnings power anywhere else in the world. So in a world where money goes into equities, technology looks spectacularly better than anything else.”

Three times a week, Yahoo Finance Executive Editor Brian Sozzi fields full of insights and chats with the biggest names in business and markets Opening bid. You can find more episodes on our videohub or check your favorite streaming service.

Brian Sozzi is editor-in-chief of Yahoo Finance. Follow Sozzi on X @BrianSozzi and on LinkedIn. Tips about deals, mergers, activist situations or something else? Email [email protected].

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