Source: Caixin News

Author: Malan

Since the 19th century, the USA's Exchanges have had a tradition of ringing the bell to mark the opening and closing of the market. Many companies ring the bell during their initial public offering (IPO), but this ceremony has gradually evolved into an important cultural and political symbol.

The first guest to ring the bell at the New York Stock Exchange was 10-year-old Leonard Ross in 1956, who qualified by answering stock market-related questions correctly on a quiz show. The first U.S. president to ring the bell at the NYSE was Reagan, during a bull market.

Media reports indicate that USA President-elect Trump will also go to the NYSE on Thursday to ring the opening bell and deliver a speech for the trading start ceremony that day. This is undoubtedly a great publicity opportunity for Trump, who has vowed to revitalize the USA economy.

At the same time, sources revealed that Trump will also be named Time Magazine's Person of the Year for 2024. However, Time Magazine has refused to leak any information before the official publication, and this year's candidates also include USA Vice President Harris, billionaire Musk, Israeli Prime Minister Netanyahu, and United Kingdom's Princess Kate.

Double happiness?

The NYSE regularly invites celebrities or industry leaders to participate in its opening and closing ceremonies. During Trump's first term, his wife Melania rang the bell at the NYSE to promote her Be Best initiative for children's welfare.

Trump's bell ringing is reportedly also to celebrate his receipt of Time's Person of the Year award. Last year, Time Magazine's CEO Jessica Sibley rang the bell at the NYSE, and the Person of the Year that year was USA singer Taylor Swift.

However, Trump's ringing the bell at the NYSE clearly has deeper political implications, which will deepen the market's perception of his strong connection to the USA stock market and, to some extent, continue to boost optimism about US stocks.

Since the election, the three main US stock indices have continued to rise at high levels, reaching new highs in recent weeks, with Trump's promises of tax cuts and deregulation being significant reasons for the positive sentiment. However, many investors are also concerned that Trump's high tariff threats will exert pressure on the upward momentum of US stocks.

However, by the end of 2024, Wall Street and investors seem more willing to believe that Trump will bring more bullish trends to the US stock market. In recent weeks, several banks and financial institutions in the USA have raised their expectations for the US stock index, with the most optimistic predicting$S&P 500 Index (.SPX.US)$that it may reach 7,100 points by the end of next year, an increase of 17% from the current level.

Editor/Rocky