Trump tax cuts come at the right time for stocks. Further ahead, it gets murky.

Peace Talks in Russia Ukraine Summit

For stock markets, the short-term and long-term outcomes of the “Trump trade” won’t necessarily be the same.

Donald Trump’s victory

So far, President-elect Donald Trump’s victory Tuesday has been positively received by investors, as was the case in 2016. The S&P 500 rose 2.5% to a record close Wednesday, buoyed by Trump’s stated intentions to, among other tax cuts, take the corporate-tax rate from 21% to 15% for companies that manufacture in the U.S.

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Stock market today: Why Sensex, Nifty are rising today

Wockhardt Share Jumps

Stock market indices Sensex and Nifty climbed nearly 1 per cent each in Monday’s trade, broadly in line with rally seen in Asian shares, as China pledged to significantly increase debt, even as it left investors globally guessing on the overall size of the stimulus.

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