Trump-Induced Stock Surge Faces Rocky Path Amid Market Uncertainty

The initial stock market rally following Donald Trump's election is losing momentum due to concerns over inflation, policy uncertainty, and rising bond yields. Investors are cautious about the potential impact of Trump's economic policies, including tariffs and deregulation, which may affect market conditions.

The post-election stock market surge attributed to Donald Trump's victory is showing signs of strain, with investors grappling with issues like inflation and uncertainty surrounding the incoming president's policies.

The S&P 500 dropped 2% last week, nullifying a significant portion of its initial gains driven by optimism about Trump's pro-growth economic agenda. Despite maintaining near-record highs with a 23% yearly increase, market enthusiasm has recently been challenged.

Rising bond yields have been a key concern for investors, casting doubt on the durability of the stock market rally. Financial experts are voicing concerns over the unclear timeline and potential consequences of Trump's policies, which include trade tariffs and deregulation, potentially reshaping economic forecasts.

(With inputs from agencies.)