US stock market futures increase as Trump administration begins second term; Bitcoin and $TRUMP also see gains

US stock market futures saw a significant uptick on January 20, 2025, as Republican Donald Trump embarked on his second term as the President of the United States. Investors were optimistic about potential immediate actions that could boost the American economy.

Key sectors like banking and energy were in the spotlight, with hopes that Trump’s policies would drive growth. Traders were also buoyed by reports suggesting that the new administration would refrain from imposing new tariffs on the inaugural day, a promise made during the campaign that had the potential to disrupt trade flows.

Futures for the Dow Jones Industrial Average surged by 166 points, marking a 0.4% increase. S&P 500 futures also climbed by 0.4%, while Nasdaq-100 futures rose by 0.6%. Regular trading on the New York Stock Exchange and Nasdaq was paused for the Martin Luther King Jr Day holiday.

Investors were eagerly awaiting a flurry of executive orders from the re-elected President that could have a profound impact on the economy. One crucial order expected from the Trump administration was the initiation of investigations into what he deemed unfair trade practices by countries like China, Canada, and Mexico, as well as a close examination of currency policies.

The postponement of new tariffs lifted European equity markets, with the STOXX 600 index in Europe advancing by 0.3% and major European indices showing gains of about 0.5%. The MSCI’s All-World index also climbed by 0.4%.

The US dollar witnessed a decline on that day, dropping by 1.3% against various currencies like the Canadian dollar, Mexican peso, euro, and Chinese yuan. Trump had previously threatened to impose tariffs as high as 10% on global imports, including imposing a 60% tariff on Chinese goods and a 25% surcharge on Canadian and Mexican products.

In the cryptocurrency realm, Bitcoin soared to an all-time high of $109,072 on that day, with a notable increase of over 10% during the month. Trump’s newly introduced cryptocurrency, $TRUMP, experienced rapid growth, reaching a market value of nearly $12 billion and attracting substantial trading volume. Additionally, First Lady Melania Trump’s cryptocurrency, launched shortly after, achieved a market cap of $1.9 billion.

Commodities saw varying trends, with gold prices edging up by 0.2% to $2,708 per ounce. However, crude oil prices faced downward pressure, with Brent crude futures falling by 1.2% to $79.82 and US crude dropping by 1.6% to $76.62. There were growing expectations that Trump might consider easing sanctions on Russia’s energy sector in exchange for a potential truce in the ongoing Ukraine conflict.