Four Factors That Will Impact Stocks

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Four Factors That Will Impact Stocks

Four Factors That Will Impact Stocks In 2025

If we look at the factors that can impact the stock market in 2025, there are two key themes. The first is the adoption of new technologies, and the second is Donald Trump's new economic policies.

The first factor to influence the US stock markets is the tariffs announced by Trump and tax cuts. Trump has announced a flat 10% tax on all imports with even higher tariffs on Canada, Mexico, and China. Trump has also announced a reduction of corporate tax in the USA to 15%.

Tariffs, Deregulation, Monetary Policy, Crypto

According to experts, the tax cuts mean higher earnings by the firms, which is a good thing for the share price. However, the tariffs mean the end consumers will have to pay a higher price.

The second factor to influence stocks in 2025 is the regulation. Now, that's a good thing which will help crypto firms, investment banks, asset managers, and so on. This will minimize the red tape while also improving the pricing flexibility.

The deregulation will be helpful for the energy, utility, and tech stocks. Once again, the second factor also hints at more downside for the US stock markets in 2025.

The third factor is the Fed's monetary policy, which can also have long-lasting effects on the stock market. The Fed is expected to keep lowering the rates as we transition into 2025. According to the forecast, the interest rate will go down by 75 bps as we approach the end of 2025.

Lower rates are a good thing for the stocks which means that's yet another for being bullish on the US stock markets.

The fourth factor is the adoption and growth of blockchain and crypto coins. According to experts, 2025 will prove to be a big moment as the crypto will integrate into the economic processes of the USA.

This means any companies involved in the crypto industry, including the chipmakers' stocks, will also benefit from it.

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