The impact of Trump’s victory on equity markets: The power of proximity

Fabrizio Ferriani, Andrea Giovanni Gazzani and Marco Taboga

Economics Letters, 2025, vol. 247, issue C

Abstract: This study provides the first analytical evidence on the reaction of U.S. equity markets to Donald Trump’s victory in the 2024 Presidential election. Leveraging on a novel textual-based measure at the firm level, we uncover significant positive abnormal returns for firms aligned with Trump’s policy priorities. These firms are especially concentrated in the financial, energy, and industrial sectors. This positive equity market response is nonetheless accompanied by rising economic uncertainty, highlighting a potential disconnect between market exuberance and the macroeconomic outlook.

Keywords: Equity markets; Donald Trump; Abnormal returns; Event study; US 2024 Presidential election (search for similar items in EconPapers)
JEL-codes: G00 G10 G14 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176525000369
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176525000369

DOI: 10.1016/j.econlet.2025.112199

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().