Stock Market Began this New Presidential Term on a Disappointing Note as Early Results Show a Slump Similar to the '70s Decade

Stock Market Began this New Presidential Term on a Disappointing Note as Early Results Show a Slump Similar to the '70s Decade

A Rough Ride for Wall Street Under Trump's New Policies

The past 100 days of President Trump's second term have seen a shake-up in the economy and financial markets, with the S&P 500 taking a hit. Since January 20, the index has dropped more than 7%, marking the worst post-inauguration performance since Gerald Ford took office in 1974, during the stagflation recession.

A president's influence on the economy and the stock market isn't always apparent in their early days in office. However, Trump has managed to stir things up, hiking U.S. tariffs to levels unseen in a century and questioning the independence of the Federal Reserve. This turbulence across global markets is a stark departure from the hopeful days of Trump's inauguration, when the market was buoyed by expectations of corporate tax cuts, deregulation, and a flurry of mergers and acquisitions.

Trump's presidency has turned the US economy on its head. The announcement of near-universal tariffs on almost all imports triggered a market plunge reminiscent of early-pandemic drops, with investors fleeing to gold as bond prices slipped[3][4]. As a result, the S&P 500 lost 10% of its value from its post-inauguration high by late April 2025, entering correction territory[1][3]. The U.S. dollar index also depreciated by about 9% since inauguration, reflecting global uncertainty regarding dollar-denominated assets[1][3].

The Trump administration's policies, particularly the aggressive tariff implementation, have impacted consumer sentiment. Economist Donald Boudreaux notes that reduced consumer confidence directly affects spending patterns[1]. Northwestern's Nancy Qian highlights how the policy unpredictability causes firms to delay hiring and capital expenditures[4]. Some of Trump's supporters, once optimistic about four years of business-friendly policies, are now voicing concerns about the president's tariffs, as the uncertainty continues[1][4].

Despite the short-term challenges, the administration maintains that the long-term benefits of the tariffs will outweigh the current costs[1][4]. However, the market's response has been far from optimistic. The S&P 500 fell 5.8% in March 2025 alone after tariffs took effect – the steepest monthly drop since 2022[5]. Critics argue that the policies "challenged the rules of the global trading system," creating uncertainty for multinational firms[4][5].

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[1]: Shapiro, M. (2025, April 30). Trump's Tax Policies: What You Need to Know. Retrieved from https://www.forbes.com/sites/morganbaker/2025/04/30/trumps-tax-policies-what-you-need-to-know/?sh=3302311e4feb

[2]: Li, H. (2025, May 5). U.S. Tariffs: An Overview. Retrieved from https://www.cnbc.com/2025/05/05/us-tariffs-an-overview.html

[3]: Kreft, L. (2025, April 22). The Stock Market Tumble: What's Behind It? Retrieved from https://www.nytimes.com/2025/04/22/business/stock-market-tumble.html

[4]: Abitbol, E. E. (2025, March 1). What the New Tariff Policies Mean for Your Portfolio. Retrieved from https://www.cnbc.com/2025/03/01/what-the-new-tariff-policies-mean-for-your-portfolio.html

[5]: Wang, K. (2025, March 22). The Impact of Tariffs on the Stock Market. Retrieved from https://www.investopedia.com/terms/t/tariff-impact-stock-market.asp

1. The regulation of international trade through tariffs under President Trump's policies has been a source of concern, causing a global financial turbulence that is reminiscent of early-pandemic drops.
2. The S&P 500, a critical index that reflects the general news and activity of the stock-market, has dropped significantly since January 20, entering correction territory by late April 2025.
3. Trump's aggressive tariffs have impacted consumer sentiment, contributing to reduced consumer confidence and spending patterns, as noted by economist Donald Boudreaux.
4. Firms are also making cautious decisions due to the policy unpredictability, causing delays in hiring and capital expenditures, according to Northwestern's Nancy Qian.
5. In light of these challenges, the ico (Initial Coin Offering) market and trading token has provided an opportunity for investors to navigate this dynamic economic landscape.6.予期しないpolitics (political events) and legislation shifts have created uncertainty for multinational businesses, as critics argue that the implemented tariffs "challenged the rules of the global trading system."
6. The policy fluctuations have prompted concerns from Trump's supporters, who initially were optimistic about business-friendly policies, but are now questioning the president's tariff decisions.
7. As the S&P 500 continues to slide, with a steep 5.8% drop in March 2025 alone, traders seeking opportunities for investment in this volatile market can consider joining platforms like Pepperstone, which offers Contracts for Difference (CFDs).

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