In the US, tech stocks surged while Bitcoin soared 37% in November, nearing $100,000 on crypto optimism.
Donald Trump watches SpaceX’s sixth test flight BROWNSVILLE, Texas – NOVEMBER 19: U.S. President-elect Donald Trump watches the sixth test flight of the SpaceX Starship rocket in Brownsville, Texas, on November 19, 2024. Elon Musk, the billionaire owner of SpaceX and a close friend of Trump, has been appointed to lead the new Department of Government Efficiency alongside former presidential candidate Vivek Ramaswamy. Brandon Bell/Getty Images
Donald Trump’s victory has led to a tough month for global markets, with winners and losers such as Bitcoin and Tesla emerging in the weeks following November 5 alone.
Among the currencies on the back of the downturn were European exporters and the Mexican peso. Meanwhile, stocks on Wall Street surged and the dollar gained 2.
However, Reuters reported that December could also bring some challenges, as Trump’s fiscal policies will disrupt the bond market, push up inflation, and complicate supply chains. Analysts warned that market optimism may ignore potential economic risks.
Currency markets were hit hard, with the euro falling 3% or more, its biggest drop since 2022, on U.S tariff threats and Europe’s economic woes. The Mexican peso and Chinese yuan fell against the dollar. On the other hand, Bitcoin surged 37% and almost hit the $100,000 mark, driven by speculation that Trump will relax his cryptocurrency-friendly regulatory stance.
Some predict that this could be a turning point for Bitcoin to move further into the public consciousness, while others warn against a speculative bubble.
US Stocks After Trump’s Win
US technology stocks surged, with the Nasdaq 100 posting its best monthly performance since June, Al Jazeera reported. Tesla rose 33%, while Nvidia gained on continued interest in artificial intelligence.
But risks also exist: Trump’s tariff plans and concerns about an AI investment bubble. The European Central Bank’s warning of an AI “bubble burst” has left the global tech market in a fragile state, which could send shockwaves through stocks if valuations continue to fall.
Banking and Bond Market Divergences
In November, U.S bank stocks rose 13% on expectations of deregulation, while European bank stocks fell 5% due to the economic impact. European banks must seek to diversify into fee-based businesses such as asset management to offset market pressures. U.S. Treasury yields rose on expectations of inflation and President Trump’s increased deficits, while German bond yields fell due to economic and geopolitical tensions.
As December approaches, world markets will face a reality check. It will be interesting to see how inflation, supply chain disruptions and geopolitical risks test optimism about Trump’s policies.