Markets are preparing for Trump 2.0

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Clock restarted for TikTok
TikTok said in a statement about X what is restoration of service in the United States after US President-elect Donald Trump wrote on his social networking app Social truth he will “issue an executive order on Monday” to delay it the ban on TikTok. On Saturday, Perplexity AI presented an offer to TikTok company ByteDance for create a new merged entity combining Perplexity, TikTok US and new capital partners, CNBC has learned.

First winning week for US stocks in 2025
Markets in the United States rose on Friday to finish the week higher for the first time in 2025. The pan-European Stoxx 600 Index reached 0.69%. The United Kingdom FTSE 100 rose 1.35% to close at a record high. The index was lifted by mining stocks, which advanced on the news that Glencore reported considered a merger with Rio Tinto although the discussions are no longer active.

TSMC confident of continued funding under Trump
Taiwan Semiconductor Manufacturing Co expect to continue receiving the $6.6 billion was promised under the Biden administration CHIPS and Science Act even after Trump took office, TSMC Chief Financial Officer Wendell Huang he told CNBC in an exclusive interview. On the campaign trail, Trump criticized the CHIPS act and accused Taiwan of stealing the chip business from the United States

Hamas and Israel exchange hostages and prisoners
U cease fire between Israel and Hamas it came into force on Sunday. Hamas has released three women in Israel, its first group of hostages, in exchange for Palestinian prisoners to be released by Israel. The process will continue over the next few weeks, during which Hamas will release 33 of the 98 Israeli and foreign hostages while Israel returns the Palestinian prisoners.

(PRO) Trump to determine the direction of the markets
Trump’s inauguration will be later Monday. Investors want to keep an eye what executive orders will trump sign starting from the first day of his presidency, especially regarding tariffs and corporate policies. Those orders could chart the direction of the stock for much longer than the near term.

U S&P 500 broke above the shiny 6,000 level after Trump’s election victory, but has largely erased all of its gains and returned to its pre-election level in recent weeks. As Trump prepares to enter the White House, however, it appears that investors are preparing to play the market based on his agenda again.

The stock ended the week on a positive note, its first weekly gain for the year. For the week, the S&P 500 advanced 2.9% and the Dow Jones Industrial Average jumped 3.7%, its best weekly performance since the week of the US presidential election in November. U Nasdaq Composite added 2.5%, its best week since the beginning of December.

Banks contributed largely to the bump in the index, as better-than-expected earnings reports from big banks lifted their shares higher. Actions of Goldman Sachs rose around 12% on the week and JPMorgan Chase rose 8% in the same period. Overall, the financial sector rallied more than 6% last week, outperforming the S&P.

Trump’s tenure as president could provide more momentum ahead for bank stocks. Rising business and consumer confidence, an extension of tax cuts and deregulation of the financial industry are potential drivers of the sector, according to Chris Senyek, chief investment strategist at Wolfe Research.

“We still see Financials as the biggest sectoral winner under the Trump administration,” Senyek wrote in a note on Friday.

That said, apart from the anticipation of Trump sitting in the Oval Office, back-to-back muted inflation readings for December also boosted animal spirits in the markets: All market sectors ended the week in the green.

Better-than-expected economic data earlier this week helped “revive the gold rush narrative for stocks, and likely prompted some risk-taking.” Barclays strategist Emmanuel Cau wrote in a note on Friday.

Typically, any change involves increased risks. That’s true with Trump 2.0 — but as the number “two” suggests, a change we’ve seen before could mitigate some of that uncertainty.

— CNBC’s Alex Harring, Hakyung Kim and Sarah Min contributed to this report.