US investors are facing a significant sell-off, with the S&P 500 index down by 8% from its all-time high in February. The current market downturn is linked to President Trump’s enthusiasm for tariffs and his administration’s perceived lack of urgency in addressing economic concerns.
This complacency has led investors to misjudge which companies would thrive under the new administration, resulting in a broader impact on the stock market. Experts warn that the situation could be more severe than just share price drops, with underlying economic forces shifting beneath investors’ feet.
On one hand, Trump’s policies are affecting consumer spending in China, which is crucial for America’s economy. A recent action plan aimed at boosting Chinese shopper spending may not yield desired results. Meanwhile, rising rents and the growing popularity of live music events have created a unique opportunity for ticket scalpers to profit from softening demand.
In response to these challenges, some economists recommend embracing “abundance liberalism” – a concept that suggests addressing economic issues through increased public investment rather than just relying on private sector growth. This approach could help mitigate the effects of Trump’s policies and lead to a more sustainable economic recovery.
Source: https://www.economist.com/finance-and-economics/2025/03/19/the-trump-administration-is-playing-a-dangerous-stockmarket-game