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Will the US stock market continue to hit new highs? The president's words are quite assertive.
On Wednesday, the U.S. stock market opened with a bit of confusion - the Dow Jones increased by a symbolic 0.03%, the S&P 500 dropped by 0.03%, and the Nasdaq climbed by 0.04%. At this critical moment, Trump made a strong statement while having breakfast with Republican senators: the government shutdown is dragging down the stock market and must be resolved immediately.
His original words were more straightforward: "In the past nine months, the US stock market has repeatedly broken historical records, and this is not over yet." The implication is very clear— the economy is in a period of explosion, new factories are opening one after another, the growth potential has not been fully released, and now the market is in a panic due to the government shutdown, which is entirely self-inflicted trouble.
Regarding those people in Congress still arguing, Trump has become impatient: "The bill should pass tonight." He urged Republican lawmakers to quickly skip the lengthy debate process, while restarting federal agencies and advancing restrictions on mail-in voting.
The data aspect indeed supports his confidence. Over the past year, the S&P 500 has accumulated a 19.6% increase, corporate profits are solid, and the AI concept has been hyped up. Despite the ongoing trade friction casting a shadow, and market fluctuations occasionally causing some fright, the U.S. stock market has held its ground.
There is an interesting detail - Trump has always regarded the rise and fall of the stock market as a barometer of his political achievements. When he met with Japanese Prime Minister Fumio Kishida last October, he specifically mentioned the record high of the US stock market, as if to say, "Look, I'm doing pretty well, right?"
The current question is: how long will the government shutdown last? Investors clearly do not want to wait too long.