CNBC Daily Open: Markets are getting ready for Trump 2.0

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This report is from today's Daily Open, our international markets newsletter. Daily Open ensures investors stay informed about everything they need to know, wherever they are. Like what you see? You can subscribe here .

What you need to know today

Combining Perplexity with TikTok in the US, and adding new capital partners, was learned by .

The parties were in talks for a potential merger with Rio Tinto, but negotiations appear to have ceased.

Taiwan Semiconductor Manufacturing Company confident of continued funding under Trump

accused Taiwan of pilfering the microchip industry from the United States.

Israel and Hamas exchange hostages and prisoners

Effectively, as of Sunday, came into play. Hamas released three women, comprising its initial group of hostages to Israel, in exchange for Palestinian prisoners being released by Israel. This exchange process is scheduled to unfold over the next few weeks, during which, Hamas will release 33 of the 98 Israeli and foreign hostages as Israel returns Palestinian prisoners.

From the start of his presidency, Trump's actions, particularly concerning tariffs and corporate policies, were of great significance. His executive orders may have the effect of steering stock market trends over time, rather than just influencing them for a short period.

The bottom line

The S&P 500 rose above the milestone 6,000 level after Trump won the election, only to lose almost all of its gains and fall back down to its pre-election level in recent weeks. But as Trump prepares to take office, it seems investors are getting ready to bet on the market based on his policies again.

The week ended on a positive note, marking the first weekly gain of the year. During the week, the S&P 500 went up by 2.9%, with the Dow Jones Industrial Average increasing by 3.7%, posting its best weekly performance since the week following the U.S. presidential election in November. The Nasdaq Composite added 2.5%, its best week since the beginning of December.

Banks were among the key factors that contributed to the gain in the indexes, as better-than-expected profit reports from large banks caused their shares to rise sharply. Goldman Sachs' shares surged around 12% during the week, while JPMorgan Chase increased by 8%. In total, the financial sector saw its shares climb over 6% last week, outpacing the S&P.

Donald Trump's presidency may indicate a forward surge in bank stocks. Rising business and consumer confidence, an extension of tax cuts, and the deregulation of the finance industry could serve as key drivers of this sector, said Chris Senyek, chief investment strategist at Wolfe Research.

"We remain bullish on Financials under the Trump administration," Senyek stated in a note on Friday.

That said, with the exception of expectations about Trump's presence in the Oval Office, the muted back-to-back inflation readings for December also boosted the sentiment in the markets: All sectors of the market ended the week with positive results.

The better-than-expected economic data earlier this week has helped "revive the goldilocks narrative for equities, and likely prompted some investors to take on more risk," Barclays strategist Emmanuel Cau said in a note on Friday.

Usually, any change comes with a higher chance of risks. That's also the case with Trump 2.0 — but as the number "two" implies, a change we've seen before might somewhat reduce the uncertainty that comes with it.