The stock market is killing it.

Think politics and the economy.

Since the recent bottom in April, the Dow is up 7,200 points, the S&P 500 is up 30 percent, and the Nasdaq is up 42 percent.

Here are a bunch of reasons why.

First: Jerome Powell is effectively out at the Federal Reserve; he’s a lame duck. And President Trump’s people will be taking over, starting with the appointment of the Council of Economic Advisers chairman, Steven Miran.

Second: Inflation is muted. The Fed’s target rate could drop by 50 basis points next month on the way to a 150 basis point easing cycle in the months ahead.  

Three: The stock market loves Mr. Trump’s One Big Beautiful Bill because it could raise profits by $150 billion. And that’s not even counting the benefits of deregulations and cutting red tape. Profits are the mother’s milk of stocks and the lifeblood of the economy.

Four: Mr. Trump loves factories. That’s really the heart and soul of his trade policy. Build American factories, hire lots more employees, and increase their take-home pay.

Stocks love factories too. The new bill gives them immediate 100 percent full cost expensing for machinery, equipment, and research and development, and a five-year write-off for new factories. Factory-building puts torque into the economy. Stocks love torque.

Five: Mr. Trump’s tariff policy has been a success. There is no global trade war retaliation. But he is opening up markets for American companies, and bringing down tariffs overseas. On balance, this is bullish for stocks.

Six: The Texas Republicans are winning the battle against the Texas Democrats in the legislature. And that could mean at least five new House seats in the midterms for an even larger GOP majority that will keep Trumpian pro-growth policies in place.

Seven: Mr. Trump is restoring law and order at the nation’s capital — and signaling possible federal intervention in other cities as well. Stocks love law and order, so people can get to work safely in the morning and come home safely to their families at night. Law and order is like a tax cut.

Eight: Mr. Trump meets with President Vladimir Putin on Friday in Alaska, so there is finally hope for a cease-fire and an end to the war on Ukraine. Oil prices are falling ahead of the Trump-Putin talks, with domestic crude heading toward $60 a barrel.

And, finally, point number nine: Who’s the most talked about Democratic politician this summer? Assemblyman Zohran Mamdani, the far-left, antisemitic, socialist, communist candidate for mayor of New York, who wants to defund the police, raise taxes on rich white people, replace supermarkets with state-run grocery stores, and give everyone free everything.

This is not what a nationwide majority of voters want. Mr. Mamdani may win at New York City, but it’s a huge loss for Democrats in next year’s midterms — and beyond.

From Mr. Kudlow’s broadcast on Fox Business Network.