A “Trump Bump” that had lifted stocks and assets, including cryptocurrency, after Donald Trump’s election and inauguration appears to have leveled off. The impact of this shift can be seen in Tesla shares, which plummeted on Tuesday, erasing most of the post-election gains driven by CEO Elon Musk’s association with Trump.
Concerns over Tesla’s performance and Musk’s involvement in Washington D.C. are contributing factors, while consumers are growing worried about the economic impact of Trump’s tariffs. A U.S. Conference Board survey showed pessimism around job availability, business conditions, and future income, as well as heightened expectations for inflation in 2025.
The 10-year Treasury yield dropped on this news, with stocks continuing to slide. If the trend doesn’t change soon, a “Trump Slump” could be looming. The Nasdaq Composite fell 1.35% for its fourth consecutive losing day, while the Dow Jones Industrial Average added 0.37%.
Low consumer confidence and rising inflation expectations are among the factors contributing to market volatility. Super Micro Computer shares rose after the company filed its financial results just in time to prevent being delisted from the Nasdaq.
Markets have been experiencing a recent downturn, but some analysts believe it may be a temporary drop with potential for recovery. With several market-moving events happening this week, investors are buying the dip. The success of “Ne Zha 2,” a Chinese animated film that beat Pixar’s box office record, highlights the growing industry in China.
Source: https://www.cnbc.com/2025/02/26/cnbc-daily-open-growing-worries-over-trumps-policies.html