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Thursday, March 2, 2017
Trump Wows Markets Like Obama Never Could
Lifezette - Thursday March 2, 2017
by Edmund Kozak
While President Donald Trump’s first address to a joint session of Congress was well-received by most in the country save bitter, partisan Democrats, perhaps nowhere was it so well-received as Wall Street.
The markets opened to a Dow Jones Industrial Average over 400 points higher than where it closed the day before. As the markets closed on Wednesday afternoon, the Dow was up by 303.31 points.
“How much does the market have to go up before you admit that there was a Trump Bump here?”
It’s a sort of effect on the market President Barack Obama never once managed to achieve from a major speech delivered to Congress. The day following Obama’s first address to a joint session of Congress, the Dow Jones was down by 78.11 points at the market’s close.
Obama’s first State of the Union address in 2010 shook the market even more — the Dow Jones lost 116.44 points the following day. It was up, however, the day following Obama’s 2011 State of the Union — by a mere 6.89 points.
In 2012, Obama apparently gave his most market-friendly State of the Union, with the Dow up by 85.22 points at market close the day following the speech.
Dow Jones Gain/Loss Day Following Joint Session/SOTU Address
Source: Yahoo Finance
In 2013, however, the Dow was down by 35.79 points the day following the State of the Union, and it would fall by over 188 points the day following 2014’s address. In 2015, the Dow rose by only 44.32 points the day following the State of the Union.
Financial experts say the financial sector was ecstatic about both the content and the delivery of Trump’s address Tuesday.
“Wall Street was happy about two things,” Stephen Moore, a former top economic advisor to the Trump campaign and distinguished visiting fellow at the Heritage Foundation, told LifeZette.
“One is that Trump came across as a commanding chief executive to our country. He will lead in a responsible dignified way. His demeanor — his command was very reassuring to people who were worried about his tweeting and things like that,” Moore said.
Secondly, “they like the message,” Moore continued. “Cut taxes, get rid of regulations, get government spending down, allow people to have vouchers so they can go to better schools, get healthcare costs down — those are all pro-business, pro-worker, pro-investment strategies,” explained Moore.
The Dow’s performance represents a “vote of confidence,” economist analyst, CNBC contributor and informal Trump adviser Larry Kudlow told LifeZette. “Trump gave a remarkable speech, remarkable,” he said. The speech exhibited “great leadership, optimism, civility,” and “great plans [that promise] growth,” said Kudlow.
Despite this, the Democrats and their allies in the mainstream media continue to behave as if Trump poses a grave threat to the American economy.
“It’s funny, I was listening to some of the news report earlier today and they’d say something like, ‘well the markets seem to be reacting positively,’ [but] how much does the market have to go up before you admit that there was a Trump bump here?” said Moore.