Stocks had their best week of the year, with the Dow up 4.6% and major indices hitting new highs, as investors responded to President-elect Trump’s anticipated tax cuts, deregulation, and growth policies. Experts caution that inflation may resurge due to trade tariffs and increased government spending. Experts caution that rising inflation and larger fiscal deficits could limit the Fed’s rate cuts, posing potential risks for the S&P 500 and investors. Deutsche Bank projects that Trump’s fiscal and trade policies could increase inflation by 0.5% in 2026, with tariffs playing a significant role.
