On a historic night, Donald Trump was re-elected as the 47th President of the United States, marking an unprecedented return to the White House. As President Trump begins his second term, both Wall Street and the American public are anticipating a wave of policy changes that could have a significant, positive impact on the stock market. Trump’s past record on economic growth, market resilience, and an aggressive pro-business approach have created a unique legacy, and his return is expected to further fuel investor optimism and market gains.

Representation of Progress in Stocks

A Proven Record of Stock Market Growth

During Trump’s first term as the 45th President, the stock market reached record highs, driven by a combination of tax cuts, deregulation, and a pro-business agenda. The S&P 500, Dow Jones Industrial Average, and NASDAQ all saw remarkable gains. One standout moment was the 2017 tax reform, which lowered the corporate tax rate from 35% to 21%, spurring corporate profits and investment. This policy ignited stock market growth, as companies reinvested in business expansion, workforce development, and technology.

Between Trump’s election in 2016 and the end of 2019, the Dow Jones rose by approximately 50%, reaching historic highs. Similarly, the S&P 500 surged, and the NASDAQ nearly doubled. Trump’s policies were directly correlated with these market gains, as businesses and investors alike felt empowered by the reduced regulatory burden and the lower tax environment.

Pro-Business Policies and Market Optimism

A core component of Trump’s appeal to Wall Street lies in his commitment to a free-market economy and his efforts to reduce regulations on corporations. In his first term, Trump made sweeping cuts to federal regulations, helping industries like energy, banking, and manufacturing to thrive. By reducing regulatory costs, these sectors were able to allocate more resources to productivity and innovation, which contributed to a positive outlook for the stock market.

This regulatory environment, along with Trump’s dedication to boosting domestic industries, fostered market resilience, even during economic uncertainties. Investors saw a president focused on making American companies competitive globally, and this commitment fueled steady market optimism. Now, with Trump’s re-election, many expect him to reinvigorate these policies, potentially catalyzing new growth in the stock market.

Trump’s “America First” Approach and Investor Confidence

Another reason for Trump’s popularity among investors is his “America First” stance, which prioritizes American economic interests. This approach has led to key policy decisions, such as renegotiating trade deals to favor American industries, notably with the U.S.-Mexico-Canada Agreement (USMCA). This deal replaced the North American Free Trade Agreement (NAFTA), reshaping the economic landscape in favor of American workers and industries. The stock market responded positively to this deal, reflecting investor confidence in Trump’s ability to secure favorable terms for the U.S. economy.

Trump’s strong stance on issues like trade and tariffs has often reassured investors that his policies are intended to create a sustainable, self-reliant American economy. This reassurance is expected to continue in his new term, as he renews his commitment to strengthening domestic manufacturing and reducing reliance on foreign imports. Investors have interpreted these moves as a signal that Trump is dedicated to long-term economic stability.

Stock Market Resilience During Uncertain Times

During the COVID-19 pandemic in 2020, the stock market experienced extreme volatility. However, Trump’s swift response with economic stimulus measures helped stabilize the market and protect American businesses. The Paycheck Protection Program (PPP), a component of the CARES Act, provided necessary funding to keep small businesses afloat and ensured continuity within the economy. As a result, despite the economic challenges, the stock market made a robust recovery, largely attributed to Trump’s decisive actions.

This resilience underscored Trump’s ability to handle economic crises and navigate uncharted territory, making investors confident in his approach to tackling challenges. Trump’s return as the 47th President has rekindled hopes that he will continue this resilience, even in times of market uncertainty. His ability to act decisively and prioritize economic stability could prove essential in supporting stock market growth in his second term.

What Lies Ahead for the Market

With Trump back in the White House, Wall Street analysts expect renewed market growth as investors anticipate a resurgence of pro-business policies. His commitment to lowering corporate taxes, furthering deregulation, and prioritizing American interests has already sparked enthusiasm among investors. Many are looking forward to seeing how Trump will drive forward his economic agenda with fresh vigor, potentially ushering in another era of record-breaking market highs.

In this new chapter, Trump’s leadership and dedication to the American economy are likely to fuel confidence across both Main Street and Wall Street. By focusing on policies that support American businesses, foster job creation, and encourage market competition, Trump’s presidency could pave the way for further growth in the stock market—solidifying his legacy as a transformative force in U.S. economic history.

Betweenplays StockPics presents Carnival Corporation ($CCL/$CUK) as a top pick for potential explosive growth in the coming years. Although Carnival’s stock price remains well below pre-pandemic highs (around $72 per share in 2018), the company has been making a remarkable recovery. Carnival has significantly revamped its fleet, replacing older vessels with new, high-capacity ships that feature advanced LNG and battery technology, making its operations more environmentally friendly and cost-efficient. These modern ships, designed to carry up to 5,000 passengers, are an attractive asset as Carnival expands its market presence, particularly in Asia.

Recent quarterly earnings have showcased record-setting revenues and strong booking momentum, with advanced bookings for 2025 and 2026 at record levels, reflecting sustained demand in the cruise industry. Carnival’s ongoing strategy to strengthen its balance sheet and gradually reduce its debt (which peaked due to pandemic-related challenges) positions the company for long-term growth, potentially surpassing previous highs when dividends return and shareholders gain added benefits  .

In addition to $CCL/$CUK, Betweenplays StockPics also highlights companies in the lithium sector as promising investments, such as Brunswick Exploration ($BRW/$BRWXF), E3Lithium ($ETL), First Phosphate ($PHOS), reflecting a broader interest in growth stocks tied to critical future industries..

By Albert Laurin

CEO/Founder, Content Creator and Commentary writer for Betweenplays StockMarket & Crypto Strategies. Lead author for Betweenplays since August 2020.