Market Slump After Trump's First 100 Days in Office
Hey there! Let's dive into the tumultuous world of finance and politics as we explore how Donald Trump's trade policies shook the foundations of global markets.
Donald Trump's second term as the 47th President of the United States kicked off with a bang - or perhaps, a whimper - as the S&P 500, a key indicator of the US stock market, plummeted by 8%. Since assuming office on January 20, 2025, Trump's policies have sent shockwaves through the global economy.
The Tariff Tsunami 🌊
Trump's signature move, the imposition of tariffs, was the primary reason for investors to part ways with trillions of dollars worth of stock market wealth. Fear of an impending recession, triggered by Trump's tariffs, caused the stock market to nosedive.
In April 2025, Trump announced his "liberation day" trade policies, creating volatile conditions that eroded investor confidence in the U.S.'s growth prospects and raised concerns regarding a potential tariff-induced rebound inglobal inflation.
A Weakening Dollar and Bond Market Shocks
- The ongoing trade policies of President Trump have led to a extreme volatility in the global markets, with the finance sector experiencing significant ups and downs.
- The imposition of tariffs, especially during Trump's second term, has been a direct cause of stocks falling out of favor with investors, contributing to a significant loss of market wealth.
- The S&P 500, considered as the benchmark for US stock market performance, has taken a substantial hit, with a decline of 8% after Trump took office in 2025.
- Tariffs have sparked fears of recession and caused the economy to tremble, with some experts raising concerns about the potential long-term impact on global markets and inflation rates.
- The weakening of the US dollar, partially due to Trump's trade policies, has led to unpredictable movements within the bond market, adding another layer of complexity to the global-economic outlook.
- Trump's "liberation day" trade policies, announced in April 2025, caused shockwaves throughout the market due to the ongoing uncertainty around inflation and potential rebound in global inflation.
- With 2024 approaching, the political landscape and its impact on the markets will remain in focus, as the world eagerly awaits the economic ramifications of Trump's trade policies well into his second term.
