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Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Investors are analyzing the possible effects of Republican control of the U.S. government on financial markets. With recent election outcomes narrowing to a "red sweep" scenario—Republican control of the White House and both houses of Congress—markets are recalibrating to align with potential economic policy shifts under Donald Trump.
Market Impact: Stocks, Bonds, and Currency
A red sweep would enable Trump to more easily implement growth-focused policies, such as tax cuts and deregulation, which could stimulate the stock market, particularly small-cap stocks. “With many of Trump’s policies geared toward supporting stocks, markets are likely to respond well to a red sweep,” noted JJ Kinahan, CEO of IG North America.
The Russell 2000 index has already seen an 8% increase, reflecting investor optimism in small caps. If Republicans solidify control, strategists expect sectors like financials and energy to benefit due to relaxed regulations and potential tax cuts.
Economic Forecasts and the Dollar
Republican control could also benefit the dollar. JP Morgan analysts predict the euro might drop to around $1.00 if a red sweep occurs, while the dollar continues its rise. This shift, along with Trump’s proposed corporate tax cuts, could increase S&P 500 earnings per share by approximately 4%, according to Goldman Sachs.
Challenges in Implementation
However, analysts caution that narrow Republican margins in Congress might restrict some policy implementations. “The campaign rhetoric may not fully translate into legislation,” said Paul Nolte, senior wealth advisor at Murphy & Sylvest.
Historical Performance
Historically, the S&P 500 has gained an average of 9.1% under unified Republican control compared to a 6.7% return with a divided government. This trend could signal ongoing market strength if Republicans secure full control.
