US stocks have fallen short of expectations this year, lagging behind European and Chinese markets despite a business- and crypto-friendly Trump administration. The Dow Jones closed 0.37% higher on Tuesday but remains below pre-recession levels.
Concerns about inflation are growing, with the Conference Board’s consumer confidence index seeing its largest monthly decline since August 2021. This has led to a sell-off in tech stocks, including Nvidia, Palantir, and Tesla, which fell 8.4% on Tuesday.
The yield on the 10-year US Treasury slid to 4.29%, signaling investor concerns about uncertainty and weaker-than-expected economic growth. Bitcoin is down 16% in the past month, trading around $88,000.
Global markets are shining, with Europe’s STOXX 600 Index gaining almost 10% this year. In China, equities continue to outperform the US.
Analysts at Goldman Sachs say a new report on Chinese tech has rekindled interest in the sector, while developments in Ukraine have boosted European tech companies. However, some strategists believe fundamentals like strong corporate earnings will drive stocks higher despite looming uncertainty.
Investor sentiment is extreme fear territory for the first time since December, according to CNN’s Fear & Greed Index. Two-thirds of traders think the market is overvalued but still outnumber bullish traders 51% to 34%.
Source: https://edition.cnn.com/2025/02/25/investing/us-stocks-bitcoin-trump/index.html