As a result of the riots carried out by Trump's supporters at the US Capitol building on January 6, 2021, the plan for the official inauguration of the US president which is scheduled for January 20, 2021 will be closely guarded by the "National Security Guards" to anticipate future actions that may fail the inauguration.
President Trump leaves the White House before the US presidential inauguration ceremony takes place. This looks different from the previous inaugurations and this was done by Trump as a result of the alleged fraud committed by Joe Biden in the US Presidential election in November last year.
Joe Biden will become the 46th US President and Kamala Harris will be the first female Vice President in the history of the founding of the US state. In addition, Joe Biden has also started calling for accommodative policies, such as a further US $ 1.9 trillion stimulus plan that will be carried out after the inauguration. Then, the appointment of Janet Yellen as US Treasury Secretary is expected to improve the US economy which has contracted quite a bit due to the COVID-19 pandemic.
US political tensions can provide negative sentiment towards riskier assets such as the stock market. However, the clarity regarding the US Presidential election is becoming increasingly clear and the timing of the official inauguration will be carried out on Wednesday this week so that it can again boost confidence in market players in the future. So, the weakening that has occurred in the last few days can be used to gradually return to accumulating stock assets (buy on weakness).
Source: CNN, BBC, SKYNEWS, NYPOST