After the Asian markets closed in green with major gains on Wednesday, the US markets picked up the momentum at the Wall Street. The American indices closed in green with major gains in the intraday trade.
This comes to pass amid the larger crisis that the global economy is moving towards, thanks to the uncertainty created by the US Administration under President Donald Trump.
Donald Trump, who has decided to base the entire US economy on tariffs alone, initiated tariffs against its biggest trading partners, including Mexico and Canada. This has also kick started a trade war, with Canada retaliating with equivalent 25 per cent tariffs on US goods.
Despite this chaos, the American markets, after turmoil earlier in the week, recovered on Wednesday.
Dow Jones Industrial Average
The marquee Dow Jones Industrial Average surged by 1.14 per cent or 485.60 points.
This took the overall value to 43,006.59 points.
S&P 500
The S&P 500, another major index at the NYSE also made major gains in the intraday trade.
The index saw a major surge towards the end of the day, as the index rose by 1.12 per cent or 64.48 points. By the end of the day's trade, the S&P 500 rose to 5,842.63.
Nasdaq Composite
The tech-heavy Nasdaq Composite was one of the biggest gainers as the index rose to 18,552.73 points.
This came to pass after the index after index after a lukewarm beginning, soared in the later half of the day. At the end of the day's trade, the index surged by 1.46 per cent or 267.57 points.
Russell 2000 Index
Russell 2000 Index, the US index that houses the mid-scale companies of the US also surged.
The index rose by 1.02 per cent or 21.22 points. This took the overall value of the Russell 2000 rose to 2,100.75.
The Game Of Taxes
This surge in the US markets is largely being attributed to the possible tax cuts that may come in the way of high net worth individuals as the tariffs go up.
At least, that is what Donald Trump promised during his campaign, and even reiterated during his State of the Union speech.
It is to be noted, that much like India and other nations, most of the resources that are poured into the markets, come from a very few number of Americans, who are high-net worth individuals, with a capacity to spend. Therefore, these lofty tax cut promises make investing in markets lucrative.
