LARRY KUDLOW: Are booming stocks signaling a Trump boom?

Economic Performance - The stock market has shown significant growth since April, with the Dow Jones up 27%, NASDAQ up 53%, and S&P up 37%, indicating a potential economic boom ahead [1] - Strong corporate profits are highlighted as a key driver of stock performance, essential for economic vitality [1] Capital Expenditure - There is a notable boom in capital expenditures (CapEx) across various businesses, driven by immediate cost expensing related to machinery, equipment, factories, and advanced technologies such as AI and quantum computing [2] Consumer Impact - Consumers are expected to benefit from IRS withholding rate changes, potentially receiving between $150 to $200 billion next year, which will positively impact disposable income [3] - The business boom is anticipated to lead to an increase in well-paying job opportunities [3] Inflation and Prices - Supply-side policies, including tax cuts and deregulation, are described as counter-inflationary, with energy production nearing 14 million barrels per day [4] - Gas prices have stabilized, with over half the country experiencing prices around $2, and real worker wages have shown recovery, increasing by approximately $1,500 [5] - Reports indicate that essential household costs have remained stable, with specific indices showing minimal increases or even declines, suggesting inflation is not a significant concern [6][7] Economic Outlook - The resolution of the government shutdown is expected to foster growth and enhance consumer confidence, paving the way for continued economic expansion [7]