Corporate America hates uncertainty. Look no further for proof than stock futures on Nov. 8, as late night Election Day returns poured in.
The Dow Jones industrial plummeted nearly 800 points in overnight trading as ballot counting showed a likely victory by presidential candidate Donald Trump. By comparison, on the first day of NYSE trading after 9/11, after a weeklong hiatus, the market fell just shy of 700 points, a record loss at the time.
By morning, however, stock prices had mostly rebounded, buoyed in large part by gains in the banking sector.
Those returns tell a story about what we know thus far about a Trump presidency as it pertains to public companies and the rules and regulations that govern them. There will be, for a time, confusion and uncertainty, but perhaps also benefits, especially for banks as the tide of post-recession, post-Dodd-Frank Act regulation rolls back.
A vision of the Trump Administration’s regulatory posture is coming into... To get the full story, subscribe now.