A presidential backstop for Wall Street may be losing its luster, with some investors fearing the selloff could deepen before any policy tweaks are made. The so-called “Trump put” – a nickname for President Donald Trump’s promise to defend equities if they were to fall – is seen as fading.
Investors believe that Mr. Trump has exhausted his options and may be under pressure from within the administration to make some concessions on tariffs. This could lead to a more significant selloff in the markets, which would then prompt him to act.
The Federal Reserve’s support for the markets is also being questioned due to inflation concerns. As the US economy continues to grow, inflation rates are rising, and investors are worried that interest rate hikes may be on the horizon. This could further weaken the equities market.
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Source: https://www.reuters.com/markets/us/global-markets-tariffs-trump-analysis-pix-2025-04-07