The Trump 2.0 Stock Market in 4 Charts
Key Points
- The S&P 500 has had the worst presidency since Barack Obama entered the White House in 2009.
- The defense sector has traditionally performed well since Trump’s inauguration has grown concerns about tariffs that could lure periods of stagnation.
- After Trump, stocks that soared after Trump’s election, like Tesla, have been affected by optimism.
Investors cheered Donald Trump for his November election victory, bidding for stocks to expect tax cuts, deregulation and business-friendly Washington, record the highest point. Trump’s accidental, inappropriate method tariff In recent weeks, people have stirred up cold waters for this optimism.
Trump 2.0’s difficult start
this S&P 500 The worst start to the presidency since 2009 when Barack Obama entered the White House Global Financial Crisis. The benchmark index has fallen more than 7% since Trump’s term on January 20. Nasdaq Composite Materials Make the situation worse; drops by more than 11%, and then bounces slightly on Wednesday.
Trump’s tariffs have rocked the stock market in recent weeks, and many economists have warned of it Inflation can be recollected. The levy and the unpredictable way they were introduced also subverted Business leaders’ expectations For the U.S. economy, it is threatened to slow down hiring and investment. Finally, Trump’s tariffs erode many daily Americans Confidence in the U.S. economy.
Ultimately, the risk of expropriation for a period of time Stagnantwhich slow growth and high inflation rates offset Wall Street’s optimism about Trump’s regulation and tax agenda.
Trump cites “some interference” to the economy, market
Trump did not do much to stabilize the market last week, which was significantly away from his first term, and he often cites strong stock markets to show his success. On the weekend, Trump declined to say whether he thinks the United States can enter Economic recession This year, when asked about the market’s reaction to his policies, he said: “You can’t really focus on the stock market.”
Trump and his cabinet members viewed some forecasters as “detox period,” “transition period” and “some disturbances” economic turmoil. But “some distractions” in Washington look like a recession for many people on Wall Street. Since Trump took office, it has traditionally been stocked Defense Department Like consumer staple foods and health care, recession-sensitive sectors (such as consumer discretion and finance departments) also fell.
Real estate stocks are becoming bittersweet. Interest rates have fallen to a large extent recently because Terrible investors flee from risky assets For safe havens such as U.S. Treasury bonds, it has led to a drop in its yield and consumer interest rates.
Optimism after the election gradually declines
Trump’s re-election release Animal Spirit On Wall Street, a sharp rise has been exacerbated Growth stocksespecially hope to Artificial Intelligence (AI). These stocks have been raised with post-election optimism, which is the hardest blow to Wall Street’s newly discovered pessimism.
Tesla (TSLA) Stocks are a good example. stock After Trump’s election Investors bet that electric car manufacturers will benefit from CEO Elon Musk’s proximity to the president. Trump agreed End government support For electric cars and boost their gasoline competitors, but stocks continue to climb. That’s partly because Musk said he would Launching robot service And turning Tesla into an artificial intelligence powerhouse, all of which are expected to help Trump.
Tesla shares have been beaten by his stock since Trump took office Positive tariff policiesfollow Musk is Too thin stretch Work with companies and governments and Consumer rebound Oppose Musk’s political influence. Stocks as of Monday All post-election gains have been abandoned.
Trump said he didn’t focus on the stock market, but he may have noticed Tesla’s stock is in trouble. The South Lawn at the White House resembles Tuesday’s Tesla showroom When Trump checked several models Say he is buying one As a support for musk.
“This guy is committed to doing this,” Trump said of Musk’s work at the Department of Efficiency (Doge).
Tesla is Best performing stocks in Wednesday’s S&P 500.