Projecting the TRUMP USA (Nov 12 Tuesday 2024, (11/12/2024), Latest Market Trend

Market Trends: 

The U.S. stock markets (Dow Jones, S&P 500, and NASDAQ) continued to rise amid what is termed as a "Trump rally." They gained across major indexes, with the Dow reaching record levels, reflecting investor optimism in U.S. stocks and a strengthened dollar, though oil prices have declined.

Bitcoin & Nvidia: 

There is speculation about whether Bitcoin and Nvidia will continue to rise under the influence of Trump trade dynamics. Bitcoin is near an all-time high of $90,000, driven by both demand for cryptocurrencies and increased Nvidia GPU sales, which are essential for cryptocurrency mining.

Semiconductor Impact: 

TSMC shares fell after the U.S. government ordered the company to halt high-performance chip supplies to China, particularly affecting Huawei. This directive, seen as a geopolitical move, also pressured semiconductor equipment companies like Nvidia, which is intertwined with crypto trends and AI demand.

Corporate Tax Cuts and Tariffs: 

Trump's potential corporate tax reduction to 15%, particularly targeting manufacturing, and proposed tariffs of 10-20% (up to 60% for China) could reshape trade flows. Lower corporate taxes might attract multinational companies to the U.S., reducing the need for firms to operate in low-tax regions like Ireland. Trump's manufacturing-focused tax strategy could strengthen U.S. industry while potentially sparking inflation in global markets.

Trade Implications: 

Broad-based tariffs, intended to reduce dependency on foreign production, could force companies to relocate to the U.S. where they would benefit from tax cuts, zero tariffs on domestic production, and lower logistics costs. However, the trade-offs include high U.S. labor costs and limited access to skilled workers.

Economic Outcomes: 

With GDP already growing, Trump's policies could further boost U.S. economic indicators if production and job growth are stimulated domestically. This hints that such changes could position the U.S. more competitively on the global stage, albeit at a potential cost of increased tensions with major trade partners.