Viewpoint: Trump's inauguration ceremony may herald a more turbulent period for the market

According to LSEG data, since World War II, the average decline of the S&P 500 index after the presidential inauguration ceremony is 0.27%. In about half of the cases, the index pumps or falls on the day of or the first trading day after the president's inauguration speech (if the speech day is a non-trading day). After Trump's previous inauguration speech in January 2017, the S&P 500 index pumped 0.3% on the same day. Due to Martin Luther King Jr. Day next Monday, the US stock and bond markets will be closed, so many trading reactions may not be evident until Tuesday. Generally, the stock market's reaction to the presidential inauguration ceremony has been relatively muted, but due to Trump's unpredictability and the influence of his comments on the market, this time may be different. During Trump's entire first term, the S&P 500 index pumped nearly 68%, but the market experienced some fluctuations, partly due to Trump's initiation of a trade war.