🔹 Wall Street's forecasts for 2025 have completely collapsed. Instead of a year of dollar strength, stock market gains, and stability, a series of political shocks have thrown the market into disarray — all thanks to Donald Trump.

🔹 The U.S. dollar saw its worst start since 2005, while U.S. stocks plunged and then surged again after Trump unexpectedly lifted some of his highest tariffs in April. Investors were caught off guard, and markets began to dance to the unpredictable rhythm of Trump’s policies.

🔍 When Forecasts Go Up in Smoke

2025 was supposed to be the year of American dominance — low taxes, high tariffs, controlled inflation, and a strong dollar. But reality turned out quite different. The dollar weakened sharply, something almost no one anticipated, especially after Trump launched his bold economic agenda.

The Bloomberg Dollar Index recorded its worst start to a year in two decades. And when Trump announced his “Liberation Day” — a sweeping wave of new tariffs — investor confidence plummeted. Some speculated he was deliberately trying to weaken the dollar to support U.S. manufacturers.

💬 JPMorgan analysts warned that a weakening dollar could scare off foreign capital and shake trust in U.S. assets. Their latest forecast expects another 2% drop in dollar strength by the end of the year.

📉 Stock Market Rollercoaster: From AI Euphoria to Tariff Panic

At the start of the year, Nasdaq was booming, driven by optimism around artificial intelligence. But the mood shifted when Chinese AI startup DeepSeek emerged as a serious competitor to U.S. tech giants. Then came Trump's tariff escalation.

Between February and April, nearly $7 trillion in market cap vanished from U.S. stocks. Fund managers withdrew from American equities in record numbers. But then Trump flipped the narrative — in April, he unexpectedly lifted some of the harshest tariffs, and markets erupted. The S&P 500 hit new highs, and tech stocks soared once more.

🌀 Trump’s unpredictable moves showed just how easily political rhetoric can overturn market behavior.

💴 Yen Rises While the Dollar Bleeds

Investors had already begun shifting toward Japan early in the year, as its central bank was one of the few expected to raise rates in 2025. When Trump’s trade shockwaves hit, the yen became a safe haven.

By June, the Japanese yen had surged nearly 9% against the dollar, making it one of the best-performing currencies of the year.

🧠 One-Minute Recap:

🔹 Wall Street underestimated the chaos of Trump’s policy

🔹 Dollar weakened despite forecasts of strength

🔹 Stock markets crashed, rebounded, and confused investors

🔹 Traders sought safety in the Japanese yen

🔹 Markets are hyper-sensitive to Trump’s unexpected interventions


#TRUMP , #usd , #WallStreet , #stockmarket , #worldnews

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