Trump plans will set off recent inventory market rally, say analysts

Donald Trump’s plans to slash regulation will fuel a new stock market rally, a US investment bank has said.

The S&P 500, the main index of corporate America, could rise by another 11pc by the end of June 2025, analysts at Evercore ISI said.

The bank’s senior managing director, Julian Emanuel, told clients that the US bull run was “still an infant: in a century of bull markets the average gain is 152pc over 50 months. This bull is young at 25 months and [with a] gain of 65pc.”

He added: “This market will be driven higher by the policy prospect of deregulation in [Washington] DC… Exuberance lies ahead; President-elect Trump will move fast on policy initiatives, and stocks will move fast in response.”

It comes despite worries that the US index, which has risen by 93pc over the past five years, could be overpriced. The FTSE 100 has risen by less than 11pc over the same period.

The bank has set a price target for the S&P 500 of 6,600 points by the end of June, compared to 5,968 today.

Wall Street has hit record highs today in the aftermath of Donald Trump’s presidential victory and expectations of a US interest rate cut this evening.

Adam Turnquist, chief technical strategist for LPL Financial, said it was the S&P 500’s best post-election day performance on record.

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