When President Trump took office for a second term, stocks were steadily rising. However, this time the trend has reversed. The S&P 500 index has fallen sharply since hitting a record high on February 19, and other major indexes like the Nasdaq and Russell 2000 have also declined into correction territory.
In his first term, Mr. Trump often credited the stock market’s performance to his policies. He viewed it as a leading indicator of economic success. However, this time investors are concerned about the Trump administration’s messaging on tariffs, which has been uneven in its implementation.
The uncertainty surrounding Mr. Trump’s policies and their potential effects on the economy is driving market turmoil. Investors worry that consumers may be hesitant to spend, and businesses to invest, leading to a possible downturn. The president has acknowledged that his economic policies could result in near-term pain but emphasizes promoting long-term job growth.
In contrast to his first term, when stocks were primed for growth following a domestic energy crisis, the market’s trajectory is now more challenging. Mr. Trump recently suggested that the stock market may no longer be the barometer for success it once was.
Source: https://www.nytimes.com/2025/03/14/business/sp-500-stock-market-trump.html