United States stock futures advanced on Monday evening (Tuesday AEDT) as President Donald Trump was inaugurated for his second term, pledging a "golden age" for the U.S. and issuing a series of executive orders.
By 10:20 am AEDT (11:20 pm GMT) Dow Jones Industrial Average futures increased, S&P 500, and Nasdaq 100 futures each gained 0.5%. The uptick followed the Martin Luther King Jr. holiday on Monday.
Trump began his term with an assertive approach, signing executive orders aimed at reshaping U.S. trade and energy policies.
Among these, he declared a national energy emergency to bolster fossil fuel production. During his inaugural address, Trump described his return to the White House as the start of a transformative period of growth and prosperity, while sharply criticising the Biden administration's policies.
Wall Street is closely monitoring Trump's pro-business agenda, which includes promises of deregulation that had previously spurred gains in banking stocks after his election victory in November.
Other sectors, such as small-cap equities, oil stocks, and cryptocurrencies like Bitcoin, remain highly sensitive to the direction of his administration's policies.
Investors are particularly interested in Trump’s approach to tariffs. Concerns persist that new import duties could stoke inflation and prompt the Federal Reserve to raise interest rates.
However, Trump’s Monday executive orders avoided imposing new tariffs on global trading partners, which investors welcomed as a stabilising move.
The stock market is riding a wave of optimism, coming off its best week since Trump’s election in November. The S&P 500 climbed 2.9% last week, the Dow surged 3.7%, and the Nasdaq Composite gained 2.5%.
