Trump rang the opening bell at the New York Stock Exchange on Thursday, a celebratory moment for the elected president as he makes a return to the White House, with the American economy at the center of this election.
Trump took this opportunity to make a new round of tax cut promises, which is also a major priority for many political donors and business leaders gathered in the trading hall of the New York Stock Exchange.
Trump vowed to cut the corporate tax rate from 21% to 15% and stated that he is discussing with advisors the reduction of taxation on capital gains and dividends, changes that would be welcomed by investors and could stimulate a market rally.
'I really want to lower the tax rate to 15%, and we can do it,' Trump said in a CNBC interview regarding corporate tax rates after ringing the bell. 'We will cut taxes further.'
Trump also promised to "make a big push in the cryptocurrency space." He pledged to cut federal regulations and begin appointing regulators, including Paul Atkins as a commissioner of the Securities and Exchange Commission, who are seen as friendly to the digital asset industry.
Thursday's event also marked Trump's recognition as 'Person of the Year' by Time magazine. The magazine awarded this title to the incoming president in recognition of his stunning political comeback in the November election, where he won a second term and the Republican Party also controlled both chambers of Congress.
Among those attending the meeting with Trump were many of his most prominent cabinet nominees, including Treasury nominee Scott Bessent, founder of Key Square Group LP; Commerce nominee Howard Lutnick, CEO of Cantor Fitzgerald LP; Health and Human Services nominee Robert F. Kennedy Jr.; Interior nominee Doug Burgum, Governor of North Dakota; Small Business Administration nominee Kelly Loeffler; and JD Vance, the elected Vice President.
Trump made his entrance to applause in the trading hall and shouts of 'USA'. He stood next to Jeffrey Sprecher, CEO of Intercontinental Exchange Inc., to ring the bell.
Before the start, Trump spoke at the exchange, using the opportunity to promote the populist economic agenda he proposed during his campaign. He said his policies would create jobs and praised the cabinet nominees who attended the event with him.
Trump said: 'I believe the economy will be very strong.'
Thursday's event was held at the iconic center of American capitalism, symbolically significant for a leader who often uses the stock market as a measure of the success of his economic policies.
Trump told CNBC: 'I think I've always said, for me, the stock market is everything.'
Trump proposed a comprehensive populist agenda during his campaign, which earned him support from Wall Street and business leaders. Polls show that this year, voters' favor for Trump is based on his commitment to expand the economy.
Even though the market performed well during Biden's presidency, Trump often claimed during his campaign that these gains were because traders believed Republicans would return to the White House.
Since the election, investors have cheered the elected president's plans for tax cuts and deregulation, leading to a rise in the S&P 500 index. However, market performance may still be tested by Trump's tariff threats against major trading partners.
Trump proposed a wide range of new tariffs targeting allies and adversaries, with mainstream economists warning that this could raise prices for American families and businesses and reduce global trade flows.
He promised to carry out mass deportations of undocumented immigrants, which has also raised concerns among some business leaders.
After ringing the opening bell, Trump did not tell investors to buy more stocks as he prepares to take office. He told Jim Cramer on CNBC's 'Squawk on the Street': 'I don't want it to be a situation where they buy and we have a drop or something else, because that can always happen.'
During his first term, Trump frequently used the stock market as a barometer of his success. During this period, the S&P 500 index rose nearly 68%, reaching all-time highs.
David Solomon of Goldman Sachs and Bill Ackman of Pershing Square, along with other Wall Street CEOs and investors, also came to the New York Stock Exchange to participate in Trump's bell-ringing ceremony.
Ackman later told CNBC: 'The majority of people across the country understand that the more successful businesses are, the higher the stock market rises, their wages go up, there are more jobs created, and there are more opportunities, which allows more businesses to come to this country, raising all boats.'
Although Trump did not tell investors to buy stocks right now, he maintained an optimistic long-term outlook. 'I think this will be a unique country in the long term. Before the COVID-19 pandemic hit, we had the best three years ever,' he said after being named 'Person of the Year' by Time magazine.
Article reposted from: Jin Ten Data