The US stock market experienced its worst day since Trump took office, with the Dow, Nasdaq, and S&P 500 all falling sharply. The White House downplayed this trend, attributing it to “animal spirits” rather than concrete economic data.
Economists disagree, citing factors such as the imposition of massive tariffs on Mexico and Canada, which has led to widespread uncertainty among investors. The mass firings of federal employees also contributed to the sell-off.
Business leaders have responded with significant investments in the US economy, including Apple’s $500 billion plan, Softbank, TSMC, and Eli Lilly. However, the White House claims these commitments are a response to Trump’s election victory and economic agenda.
Contrary to his previous stance, Trump has largely stopped using financial markets as indicators of the nation’s economic health. Instead, he points to business leaders’ investments as evidence of a strong economy.
Experts argue that investors are now focusing on potential downside risks and uncertainty, which can be directly linked to the president’s policies.
Source: https://www.cnbc.com/2025/03/10/white-house-stock-market-sell-off-animal-spirits.html