11:00 AM EST, 11/06/2024 (MT Newswires) -- Markets are reacting positively, with US stock futures up and Treasury yields rising in anticipation of stronger growth, potential tax cuts, and deregulation as Donald Trump wins the US presidency again with the Republican majority in the Senate, UBS Securities said in a note on Wednesday.

Fiscal concerns and narrow majorities may limit some initiatives from Trump's platform, which covers the extension of personal and corporate tax cuts, deregulation, tariffs, and a re-assessment of America's role in global affairs, the firm said.

UBS expects that high tariffs on China and other countries could disrupt trade, increase inflation, and impact global GDP.

The firm said the Federal Reserve "may slow the pace of rate cuts" in anticipation of higher inflation from "changes to migration, trade, or fiscal policy."

US equities could see a near-15% rise by the end of 2025 due to stable growth, interest rate cuts, and AI-driven demand, while US 10-year Treasury yields increased amid inflation concerns, according to the note.

UBS said the dollar strengthened on expectations of growth and tariffs but may depreciate longer-term due to overvaluation and deficits.

Gold prices dipped slightly but could rise with higher deficits and geopolitical risks, the research firm noted.