Does Trump pose a threat to complacent markets?

Investors respond rapidly to incoming US president’s unpredictable rhetoric and policy

Madame Tussaud designers in London adjust a wax figure of US president-elect Donald Trump. His behaviour and policies will dictate whether more market U-turns arise. Photograph: Will Oliver/EPA

Madame Tussaud designers in London adjust a wax figure of US president-elect Donald Trump. His behaviour and policies will dictate whether more market U-turns arise. Photograph: Will Oliver/EPA

Donald Trump’s US presidential election victory in November triggered one of the biggest post-election stock market rallies in history, but will Trump’s reign live up to the expectations of investors? Or are markets complacent about the risks posed by this most unpredictable of presidents?

The S&P 500 has enjoyed a double-digit percentage bounce since election night, with investors betting that Trumponomics – reduced taxes and regulations as well as increased infrastructural spending – would deliver higher economic growth and inflation.

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