Trump 2.0: The First 100 Days | United States

Trump Bump Pares Back Stock Market Indices (November 5, 2024 = 100)

Impact on CRE

• Real estate is not the stock market. Just because the stock market goes up or down,

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until it impacts the economy, it doesn’t necessarily mean anything for the real estate fundamentals.

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• However, the wealth effect is important. When stocks are rising, people feel wealthier and they spend more. But it can go the other way too. A good rule of thumb: every $1 decline in stock wealth causes consumer spending to decline by 2-4 cents. • If the stock market continues to go down and stays down, this would inevitably impact consumer spending, which hits business profitability, then jobs, and eventually the CRE sector. • Normally, the stock market isn’t something we are overly focused on in understanding where property is headed. But right now, we are watching it.

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DIJA NASDAQ S&P 500

Source: S&P Dow Jones Indices LLC, NASDAQ Daily Market Statistics

CONTENTS

CONTENTS

Cushman & Wakefield