U.S. stock futures climbed higher on Monday evening following the inauguration of President Donald Trump for his second term, signaling investor optimism. The S&P 500 and Nasdaq 100 futures both advanced by 0.4%, while the Dow Jones Industrial Average futures surged 187 points, or 0.4%. This rise in futures follows a robust performance last week, where the S&P 500 experienced its best week since November, gaining 2.9%. The Dow jumped 3.7% and the Nasdaq Composite increased by 2.5%.
President Trump returned to the White House with a commitment to usher in a period of growth and success for the nation. He commenced his term with a series of executive orders focused on U.S. trade policy and energy. These initiatives stopped short of imposing new duties on international trading partners but included a national energy emergency declaration aimed at boosting fossil fuel production. Wall Street remains attentive to Trump's pledges of pro-business policies, anticipating further details on potential tariff implementations.
The stock market's recent gains reflect its best week since the period following Trump's initial election. Investors are keenly watching for how Trump's policies, particularly those concerning trade and energy, will materialize.
"Asset prices in 2025 will be significantly driven by the path of Trump's policies. Uncertainty is likely to persist and be a feature of Trump's presidency," said Robert Sockin, senior global economist at Citi.
Monday's trading session was shortened due to the Martin Luther King holiday, yet equity futures managed to gain ground. Investors are poised to react to any developments in Trump's policy execution, aware of the president's penchant for maintaining an air of unpredictability.
"Trump seems to thrive in a world of ambiguity in which his political opponents and international counterparts are unclear regarding his next move. Investors who stay nimble but also stay focused on underlying strong economic fundamentals are likely to reap benefits," added Sockin.