Trump’s Win Sparks Market Rally—China’s Lead in Innovation Grows Stronger

Vladimir Popescu
Trump
Source – Techopedia

The Trump’s win market rally pushed Bitcoin up by 33.58% while safe investments dropped in value. Investors showed more confidence by buying small-cap stocks and dollars. Meanwhile, China got even stronger in innovation despite ongoing trade fights and market volatility in the global economy.

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How Trump’s Win Fuels Market Volatility and China’s Innovation Dominance

Bitcoin and Small Caps Lead Post-Election Surge

Growth investments did very well right after Trump won. Bitcoin jumped up 33.58%, more than anything else. Small-cap stocks grew by 7.12%. S&P 500 Growth stocks went up 5.71%, and the main S&P 500 increased by 4.77%. These gains show investors feel positive about future growth, fueled by Trump’s win market rally.

Dollar Strength Mirrors 2016 Pattern

The US dollar got stronger after the election, just like it did in 2016. Currency markets moved a lot after Trump’s win, causing a market rally. The Turkish lira and Mexican peso dropped the most. This shows how much US politics can change global money markets.

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Major Cryptocurrencies Outperform Altcoins

Big cryptocurrencies did better than smaller ones after the election. This trend started in early 2023 and got stronger when Trump won, fueling a market rally. Bitcoin led the way as big investors bought in, and rules became clearer. The gap between major coins and smaller ones keeps growing.

Volatility Indices Signal Market Confidence

Market fear went down as the VIX index dropped below 15. The MOVE index showed bond markets were calmer, too. Both measures tell us investors feel more secure now that the election is over, indicative of the confidence stemming from Trump’s win market rally.

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Trade Patterns Shift Amid Global Tensions

China ships fewer goods to America now, only 12.2% of US imports. ASEAN countries are sending more instead. Regional trade groups are getting stronger while US and China keep arguing. Smaller countries are finding new ways to trade in this changing system, which was affected by Trump’s win in creating a market rally.

Global Trade Growth Stabilizes

World trade isn’t growing as fast as before. Growth since 2018 has been slower than it was from 2010 to 2017. Countries are changing how they trade with each other. More focus goes to regional deals and safe supply chains. Market volatility makes countries rethink who they trade with, influenced by the aftermath of Trump’s win.

China’s Innovation Leadership Expands

China leads in new technology with 45.9% of world patents. The US only has 15.7%. Chinese companies spend a lot of money on research in quantum computing and AI. They compete strongly in global markets despite trade problems. Their tech growth keeps going up, showing China’s strength in innovation continues to grow.