1. The safe-haven status of the US dollar is shaken – Trump has stated that he will never support a weak dollar, but also claimed that a weak dollar "will make a lot of money for American companies." Market concerns about the safe-haven role of the dollar have led to a cumulative decline of over 7% in the US dollar index so far in 2025.
2. "Sell America" rhetoric emerges – Trump's "Beautiful America Bill" could exacerbate the US deficit, Moody's downgraded the US credit rating, fueling the "sell America" rhetoric, leading to a sell-off of US Treasuries, and the yield on the 30-year US Treasury bond briefly exceeding 5%.
3. Tesla's rollercoaster ride
Elon Musk's endorsement of Trump caused Tesla's stock price to surge to an all-time high of $488.5 after the election. However, declining deliveries caused Tesla's stock price to halve at one point, and the subsequent public split further damaged Tesla's stock price.
4. The "TACO" trade
—An abbreviation for "Trump always backs down," which became popular in financial markets in May. The market believes that Trump always threatens to impose tariffs but then delays implementation, and Wall Street uses this pattern to buy on dips.
5. Igniting a Crypto Frenzy
—Trump frequently courted the cryptocurrency market, considering establishing a Bitcoin reserve and signing the Genius Act. In July, the total market capitalization of cryptocurrencies surpassed $4 trillion for the first time. In October, Bitcoin surged to a record $126,000.
6. Igniting a Precious Metals Rally—Trump's attacks on the Federal Reserve's independence and tariff threats, coupled with geopolitical tensions in the Middle East and Russia-Ukraine conflict, triggered widespread global demand for safe-haven assets, causing gold to repeatedly reach new highs, with silver and other precious metals following suit.
7. Significant Volatility in US Stocks and a Boom in AI—Since Trump's election victory, the S&P 500 has soared 18%, but market volatility has also increased significantly. The "Big Seven" tech companies contributed more than half of the total market gains, while other sectors struggled.
8. Drastically Suppressing Oil Prices—Trump garnered support from energy giants with the slogan "Drill, baby, drill," and declared a national energy emergency after taking office. Externally, he pressured OPEC+ to increase production, causing international oil prices to hit a four-year low.
9. European defense stocks surged – Trump’s threats to withdraw from NATO and reduce aid to Ukraine have greatly alarmed the EU, while German Chancellor Merz proposed a significant increase in military spending and infrastructure investment “at all costs,” triggering a rally in European defense stocks.
