President-elect Donald Trump's announcement laying out his goals for his first days in office gave investors confidence in his pro-growth policies as markets broke record highs, economist John Silvia told CNBC on Tuesday.
U.S. markets opened higher on Tuesday, with stocks hitting all-time highs and the Dow Jones industrial average rising above 19,000 for the first time in history. The bounce was also reflected in the S&P 500, the Nasdaq and the Russell 2000.
Silvia, Wells Fargo Securities chief economist, said on "Squawk on the Street" that Trump's video released Monday offering a clearer framework for his policies helped boost stocks by confirming the primary drivers for continued growth. These policies include tax cuts, ramped-up infrastructure spending and deregulation.
Trump also vowed to withdraw from the Trans-Pacific Partnership and negotiate more favorable deals in its place.
"It seems to me that Donald Trump is betting that his ability to do bilateral deals will get the U.S. economy further than doing a multilateral broad deal overall for the global economy," Silvia said.
Oppenheimer Asset Management chief market strategist John Stoltzfus told CNBC the president-elect showed a commitment to his campaign promises while also adjusting to reality by outlining his policies, especially on trade.
"He's most certainly sending a signal that … at his core he's sticking to his guns, but I think he's also tempering things as he moves forward just by the reality of what global trade is, technology, and the effects on the workforce around the world," Stoltzfus said.
Stoltzfus and Silvia agreed that despite the market's optimism about Trumponomics, it will take a long time – up to a year and a half, according to Silvia – for the benefits to be seen.
"First you have to complete the design, then implement it, you've got all kinds of execution risk," Stoltzfus said. "It's going to take years to see the fruits of a lot of what's just on the drawing board."