Market Reactions to Election Results

The election of President-elect Trump has led to significant market shifts, with major stock indices rising by over two and a half percent. Investors are responding positively to proposed corporate tax cuts, which are expected to enhance earnings and drive stock prices higher, leading to a decrease in market volatility. Meanwhile, the bond market's response has been marked by rising yields due to concerns about increased government borrowing to fund tax cuts. The overall sentiment in the market reflects a transition from pre-election uncertainty to a newfound confidence in economic prospects.