However, the post-election market rallies are often short-lived. In the weeks following Trump’s reelection, the S&P 500 decreased approximately 2% two weeks after election day, while the Canadian TSX index rose modestly about 0.5%. Inflation rates in both the U.S and Canada have stayed in a downward trend below the targeted rates, exhibiting the limits of consumer expectations for growth. These fluctuations emphasize the fickle nature of the market as market trajectories are significantly influenced by inflation rates and monetary policy rather than political changes.

The Trump administration’s resolutions for tax cuts and deregulations might lead to growth in the short term. Yet it is impossible to ignore the consequences of high tariffs, deportation, and reduced immigration that Trump's policies may ignite, warned by the sixteen Nobel-prized economists. Trump’s tariff plan of imposing 10-20% universal tariffs on American imports and up to 60% on China may act as an inflationary tax. Worse, the universal tariffs may spark retaliatory tariffs, harkening back to 2018, when the Trump administration increased tariffs on imports of steel and aluminum products from Canada, sparking Canadian countermeasures on U.S imports. These concerns have not reached deaf ears as a portion of investors do not have confidence in Trump’s economic plan. Concerned voices eventually dampened the frenzied enthusiasm resulting from election night.

While Trump’s fiscal policy agenda has little impact on the long-run market trends, it does have a specific impact on industry sectors. Post-election U.S energy markets, notably fossil fuels such as oil, gas, and liquefied natural gas (LNG), experienced considerable rally. However, renewable energy companies experienced headwinds. First Solar, one of the largest American manufacturers of solar panels, stock prices fell 16.1% the morning after election night. Trump’s promise to repeal Biden’s “Socialist Green New Deal” from the Inflation Reduction Act (IRA) and his plan to withdraw from the Paris Climate Agreement may have significant consequences in the clean energy sector, slowing the transition to green energy and falling back on fossil fuels.  In Trump's second term, decreased federal spending on renewable energy initiatives will be expected. However, renewable energy's future remains strong, as private and state-level investments will continue. Despite the Republican trifecta, many Republican districts have disproportionately benefited from Biden’s Inflation Reduction Act. A bill to repeal parts of the IRA would ideally be inhibited in Congress, preventing an economically backward step.