Invest
Stock market rallies despite Trump’s impeachment
The US market has continued to rally, ignoring Trump’s impeachment trial and instead focusing on Biden’s stimulus package, an expert has said.
Stock market rallies despite Trump’s impeachment
The US market has continued to rally, ignoring Trump’s impeachment trial and instead focusing on Biden’s stimulus package, an expert has said.
The market is continuing its rally, with the S&P500 now up 75 per cent from its lows during the height of the COVID-19 pandemic, while the NASDAQ100 has doubled.
Chief executive and founder of deVere group Nigel Green believes investors are unfazed by the political tension and are instead focusing on Biden’s economic support package.
The comments from Mr Green come as the Senate declares the second impeachment trial for the former president as constitutional, despite calls from Republicans to reject proceedings.
Democrats now have up to 16 hours over the next two days to make their case in the Senate to convict Trump.
“The second impeachment of a US president – a major, far-reaching political event in the world’s largest economy – would normally have Wall Street and stockmarkets around the world in a tailspin,” Mr Green said.
“But this is not the case.
“Shares in Asia Pacific were higher on Wednesday, with Chinese stocks leading gains among the region’s major markets. The pan-European Stoxx 600 moved marginally above the flatline at the opening, while US futures point to new record highs.”
Mr Green believes markets are shrugging off the impeachment noise because Trump’s chances of acquittal remain high.
Instead, he opined the market is looking towards the US$1.9 trillion stimulus package outlined as part of Joe Biden’s plan to bail out the US economy.
“Unless the Democrats are unable to get through another round of fiscal stimulus because of the proceedings, it’s likely that markets will continue to ignore the Senate.
“Investors’ focus is on President Biden’s proposed stimulus package, specifically whether it will be watered down and when it will be rolled out – with the hope it will be sooner rather than later.
“In addition, they are looking ahead to see the Biden administration’s policies in action and what they really mean for what sectors and industries,” he said.
Mr Green said investors will also be eyeing the release of January’s CPI figures as they attempt to predict when US inflation will overshoot due to the fiscal stimulus.
Treasury Secretary Janet Yellen and Federal Reserve chair Jerome Powell have both been keen to play down the risk of higher inflation from the stimulus. However, rising Treasury yields and measures of inflation expectations indicate otherwise.
The deVere CEO concludes: “It may be round two for impeaching Trump, but it’s set to have very little impact on markets. They just aren’t fazed. They’re looking ahead, not back.”
RELATED ARTICLES
About the author
About the author
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
Lifesaving Regional Response Strengthened with New NSW SES Vehicles
In a significant boost to regional emergency services, the NSW State Emergency Service (SES) has unveiled 11 new Community First Response (CFR) vehicles, designed to enhance the speed and safety of ...Read more
Economy
Australia's June quarter GDP growth driven by consumer and government spending
Australia's economy has shown unexpected resilience in the June 2025 quarter, with household and government consumption driving growth despite a significant decline in public investmentRead more
Economy
Australia's GDP surprise is real but operators should heed the growth mix warning light
Australia’s June-quarter growth beat expectations on the strength of household consumption and government spending, even as public investment sagged. The upside surprise signals resilience, but the ...Read more
Economy
Households carried the quarter: what Australia’s upside GDP surprise means for strategy now
Australia’s economy expanded faster than expected in the June 2025 quarter, with GDP up 0.6 per cent quarter-on-quarter and 1.8 per cent year-on-year — the strongest pace in two years. The kicker ...Read more
Economy
Inflation dynamics in Australia: Electricity subsidies and labour market in focus
In a recent economic analysis, experts from State Street have highlighted significant developments in Australia's inflation landscape, attributing the changes primarily to the withdrawal of ...Read more
Economy
Australia's economic growth driven by consumer and government spending: A closer look at the June quarter
Australia's economy has delivered a surprising performance for the June 2025 quarter, surpassing expectations with a growth rate of 0.6% quarter-on-quarter and 1.8% year-on-year. This unexpected ...Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
Lifesaving Regional Response Strengthened with New NSW SES Vehicles
In a significant boost to regional emergency services, the NSW State Emergency Service (SES) has unveiled 11 new Community First Response (CFR) vehicles, designed to enhance the speed and safety of ...Read more
Economy
Australia's June quarter GDP growth driven by consumer and government spending
Australia's economy has shown unexpected resilience in the June 2025 quarter, with household and government consumption driving growth despite a significant decline in public investmentRead more
Economy
Australia's GDP surprise is real but operators should heed the growth mix warning light
Australia’s June-quarter growth beat expectations on the strength of household consumption and government spending, even as public investment sagged. The upside surprise signals resilience, but the ...Read more
Economy
Households carried the quarter: what Australia’s upside GDP surprise means for strategy now
Australia’s economy expanded faster than expected in the June 2025 quarter, with GDP up 0.6 per cent quarter-on-quarter and 1.8 per cent year-on-year — the strongest pace in two years. The kicker ...Read more
Economy
Inflation dynamics in Australia: Electricity subsidies and labour market in focus
In a recent economic analysis, experts from State Street have highlighted significant developments in Australia's inflation landscape, attributing the changes primarily to the withdrawal of ...Read more
Economy
Australia's economic growth driven by consumer and government spending: A closer look at the June quarter
Australia's economy has delivered a surprising performance for the June 2025 quarter, surpassing expectations with a growth rate of 0.6% quarter-on-quarter and 1.8% year-on-year. This unexpected ...Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
