LARRY KUDLOW: Markets are surging under Trump's transition

Markets are surging on Trump's transition and ‘golden age’ agenda. And that's the subject of the riff. 

President Donald Trump has been President-elect Donald Trump after his landslide win on November 5th. It's only been a month and one thing stands out – his transition has been enormously popular. Polls are showing him with a better than 50% approval rating. 

But forward-looking financial markets, which are always a better gauge of the future health and wealth of the country, have been applauding Mr. Trump for weeks. Some Wall Street wags are saying stocks love Trump, and bonds love Bessent.

Stocks are up almost 3,000 points on the DOW and bond yields in the Treasury market are down nearly half a percentage point. The huge stock rally is signaling approval of Mr. Trump's economic growth plan of tax cuts, ‘drill, baby, drill,’ protecting America from unfair trade, and the DOGE brothers' push to defeat the regulatory state and curb the size and scope of government. 

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Noteworthy is the drop in bond rates, which puts the lie to the idea that investors believe Trump's policies are inflationary. In fact, bond rates have been falling ever since Trump designated Scott Bessent as Treasury Secretary and I believe that markets are very happy with the Trump economic team – with the Big Three being Bessent at Treasury, Kevin Hassett as National Economic Council director, and Russ Vought as Office of Management Budget director. These are market savvy, supply-side, pro-growth, King Dollar advocates. 

And speaking of nominations, Mr. Trump has designated over 70 major positions so far, in just a couple of weeks. The speed of his transition decision-making is virtually unprecedented – peace through strength on the national security side, pro-growth on the economic side.

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Promises made, promises kept – he told us in his victory speech on election night and we should take it seriously, bringing the country together and ending the divisiveness of the Biden era. Success is the best path to unify the country. 

These are all Trumpian themes. They are all ‘America First’ themes. They are all ‘golden age’ themes – just what the country needs.

This article is adapted from Larry Kudlow’s opening commentary on the Dec. 6, 2024, edition of "Kudlow."