Wall Street thrilled over new U.S. president

Fri 11/08/2024

by Ellie LeTu

Source: WSJ

• Trump expected to bring a new age of deregulation

  • US stocks rocketed by $1.62T the day after the election.

  • More business friendly regulators expected to replace the regulatory hardliners appointed in the Biden administration.

  • Noted M&A opposition leader, FTC chair Lina Khan, is expected to depart.

• M&A expected to come roaring back

  • Two of the biggest Wall Street dealmakers, Goldman Sachs and Morgan Stanley, were among the biggest gainers in the markets.

  • The seven largest US tech stocks added $475B in combined market cap.

    • Expectation that companies like Amazon and Meta can resume dealmaking.

• Looking forward

  • Republicans looking likely to sweep both the Senate and the House.

    • Gives Trump increased flexibility to enact his policies.

  • Banks stand to be major beneficiaries

    • Increased dealmaking and lighter regulation could usher in record profits.

    • Trump expected to soften capital requirements at the largest banks too.