Impact of Donald Trump's Presidency on Financial Markets

Stocks

* Initial surge in stocks following Trump's election due to anticipated protectionist policies benefiting small businesses.
* Russell 2000 Index lost much of its gains after investors questioned interest rate cuts and policy implications.
* Bank stocks initially rallied on expectations of eased regulations but subsequently lost momentum.
* Energy sector initially benefited from Trump's pro-oil and gas stance but faced volatility due to supply concerns and economic growth.
* Crypto-related stocks and Tesla performed well post-election.

Currencies

* Dollar strengthened significantly against global currencies due to expected tariffs and inflationary pressures.
* Euro and Canadian dollar weakened, as predicted by analysts.
* Emerging market currencies generally declined, with the Mexican peso showing resilience.
* Chinese yuan depreciated amid trade uncertainties and yield differential.

Rates

* Yield curve steepened as expected, with the 10-year and two-year Treasury yield gap widening.
* Fed's interest rate cuts and economic uncertainty impacted short-term rates.
* Treasury yields plunged amid softer inflation data, highlighting market uncertainty.

Crypto

* Trump's support for cryptocurrencies led to a surge in crypto asset values.
* Bitcoin reached a record high, gaining 50% since the election.
* Executive order reportedly planned to prioritize crypto policy and provide industry representation.

Outlook

* Tariffs remain a key risk, potentially escalating trade tensions.
* Immigration policies and geopolitical tensions also pose concerns.
* Market participants monitor these developments closely as Trump takes office.