Consequences in the markets: actions of Trump and Zelenskiy

On the global stage, decisions by leaders like Donald Trump and Volodymyr Zelenskiy are generating volatile reactions in the markets. Here’s how their actions are setting the financial pulse:

1. Effects of Trump on the Markets

  • Massive Tariffs and Stock Market Decline

    On April 2, 2025, Trump announced widespread tariffs of between 10% and 50% on imports, triggering a sudden drop in the markets: the Dow Joneslost more than 1,300 points (-3.2%) and the S&P 500fell by 3.1% Wikipedia+1.

  • The "Liberation Paula" Collapses

    This initial avalanche wiped out more than $3 trillion in global market value. Fortunately, a strategic pause on those tariffs on April 9 helped regain ground; by the end of June, the S&P 500and the Nasdaqreached all-time highs Wikipedia.

  • Eroded Confidence, Weakened Dollar, and Rising Yields

    Trump's erratic and protectionist policies undermined confidence in U.S. institutions. The dollar weakened, while bond yields and borrowing costs rose, feeding fears of inflation Barron's+1The Times.


  • U.S. Institutionalism Under Siege

    His direct intervention in corporate decisions—from strategic licenses for companies like Nvidia or Apple to political favoritism—has raised perceptions of "crony capitalism" and sown doubts about the independence of the public and regulatory sector Financial TimesThe Week.


  • Risks of Stagflation and Adjustments for Banxico

    Combinations of tariffs, immigration restrictions, and fiscal expansion threaten to slow growth while raising inflation – a perfect storm that could complicate monetary policy decisions research-center.amundi.com.

2. Impact of the Trump–Zelenskiy Shock

  • Geopolitical Tension and Declining Risk Appetite

    A tense meeting between Trump and Zelenskiy shook investors: U.S. Treasury bonds were sold as a safe haven, while European futures fell and appetite for stocks fluctuated yahoo.comkitco.com.


  • Uncertainty over a peace summit

    The meeting in Washington did not yield clear progress towards a ceasefire or diplomatic solution, which heightened fears of global instability. This would have a direct effect on asset volatility in Europe and Ukraine, and global risk sentiment Reuters+1.


  • Geopolitical Drift as a Global Warning Signal

    The deterioration in relations and the lack of consensus between both leaders raise the perception that peace is not near, which could generate a wave of financial uncertainty and volatility in new markets JustMarketsReuters.


    Overall Summary:

Actor Market Consequences Trump Abrupt declines due to tariffs; volatility in bonds, dollar, and rates; loss of confidence in institutions; variable sectoral impact; stagflation risk. Zelenskiy–Trump Increased risk aversion due to diplomatic frictions; pressure on bonds as a refuge; slow recovery of confidence regarding conflict resolution.

https://www.reuters.com/business/global-markets-trading-day-corrected-graphic-2025-08-18/?utm_source=chatgpt.com

https://www.barrons.com/articles/trump-markets-stocks-gold-bitcoin-oil-46bccc8e?utm_source=chatgpt.com