Stock Market Today: Dow, Nasdaq climb on last trading day of Biden presidency; S&P 500 set for best week since election aftermath
01.17.2025
While Morgan Stanley's base-case view is President-elect Donald Trump will produce fast announcements and slow implementation of tariffs, "we think most investors fear the prospect of fast announcements and fastimplementation," according to a team of strategists.
"If coming executive orders surprise with faster-than-priced implementation of tariffs and/or larger-than-priced increases, then we would expect (1) US Treasury yields at the short end of the curve to increase, and by more than at the long end, in the initial reaction, and (2) the US dollar to appreciate – particularly against the CNY [Chinese onshore yuan], CAD [Canadian dollar], and MXN [Mexican peso]," the Morgan Stanley team wrote in a note.