Due to traders betting that the Trump administration will introduce comprehensive tax cuts and reforms that are bullish for usa businesses, investors are flooding into the usa stock market.

According to statistics from data provider EPFR, since Trump's victory on November 5, investors have injected nearly 140 billion dollars into usa stock funds, driving november to set a record for the highest monthly inflow since 2000, and major usa stock indices have consequently hit a series of historical highs.

The market seems to have put aside the potential rise in inflation caused by increased tariffs and the consequences that may hinder the federal reserve's subsequent rate cut plans. Dec Mullarkey, managing director of SLC Management, stated:

The pro-growth agenda proposed by Trump is being widely accepted by the market. The cabinet members selected by Trump also align well with market expectations.

According to the united kingdom's Financial Times, Trump plans to include several financiers in his administration, including appointing investor Scott Bessent as secretary of the treasury and appointing Paul Atkins, who is friendly to cryptos, as chairman of the securities and exchange commission. Trump also promised that as part of his pro-growth agenda, his administration would seek to cut regulations and taxes.

Since the election day, the s&p 500 index has risen by 5.3%; small companies, which are more sensitive to fluctuations in the usa economy, performed even better, with the e-mini russell 2000 index reaching a historic high last week for the first time in three years. Emerging markets have suffered a net outflow of 8 billion dollars, with losses in western europe amounting to approximately 14 billion dollars.

As of the time of writing, both the s&p and nasdaq have again reached new highs, with the s&p 500 index's year-to-date increase approaching 28%.

Kevin Gordon, senior investment strategist at Charles Schwab, compared the current market increase with the significant rises seen in 2021 and the first half of this year. He stated: "Currently, we are not repeating the scenario of 2021 where the market set new highs but with a worsening breadth. I think this is a relatively healthy setup."

However, deutsche bank strategist Parag Thatte reminded that as market enthusiasm gradually fades after the election, the rapid pace of inflow in November may slow down, but the long-term trend may continue to encourage new inflows, thereby boosting the usa market next year.

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