The stock market has soared during the presidential campaign. Will it continue?
The stock market has climbed over the course of the presidential campaign, raising questions about whether the rally will continue depending upon which candidate wins: Vice President Kamala Harris or former President Donald Trump.
The S &P 500 has soared more than 20% this year, repeating a feat that the index achieved in 2023. The Nasdaq has jumped 23% this year, while the Dow Jones Industrial Average has increased 14%.
Over the full span of the next administration, the market will likely move higher whether the nation elects Harris or Trump, experts . However, they added, each candidate’s policies could favor different types of stocks while posing unique risks.
Here’s what to know about what a win by Harris or Trump could mean for the stock market:
Trump has vowed to extend the corporate tax cuts signed into law during his first term when they begin to phase out in 2025. If approved by Congress and signed into law, the tax cuts would accompany an anticipated deregulatory agenda taken up by federal agencies within the Trump administration.
That combination of low corporate tax rates and loose regulation would likely bolster corporate profits and propel the stock market higher, experts said.
“Taxes do have consequences,” Peter Morici, a professor emeritus at the University of Maryland’s School of Business, . “With the Trump administration, it will be like a cork coming out.”
Trump policies would favor sectors such as oil and gas as well as artificial intelligence.
