first sensible pubi so far, thanks

In his speech on January 7, 2025, Donald Trump made provocative statements that shook the financial markets:

1. Military Threats: Trump suggested military action in the Panama Canal, Greenland and even the possibility of annexing Canada. He also warned that the situation in the Middle East would become “hell” if Hamas did not release hostages before his inauguration on January 20. These statements increased global uncertainty and generated negative reactions in the markets.

2. Market Reaction: The S&P 500 and Bitcoin fell substantially, with investors seeking safety in more stable assets due to increased geopolitical volatility.

These statements generated fears of escalating conflicts, impacting market sentiment and contributing to the retreat in risky assets such as stocks and cryptocurrencies.

Impact on the Financial Market:

1. Stock Markets:

• The stock market, especially indices such as the S&P 500, reacted negatively to these geopolitical threats. Uncertainty over potential military conflicts has sparked fears of volatility in global assets, prompting sell-offs in stocks and a recalibration of risky asset prices.
• The 1.12% drop in the S&P 500 ETF reflects this trend, showing that investors have sought refuge in safer assets such as gold rather than stocks or cryptocurrencies.
2. Cryptocurrency Market:
• The impact was also felt in the cryptocurrency market: Bitcoin and other altcoins suffered substantial losses, with Bitcoin falling below $96,000, a decline of around 5%. This is because the crypto market tends to react negatively to geopolitical risks and global uncertainties, as these factors can affect global economic stability and reduce risk appetite.
3. Sentiment of Uncertainty and Volatility:
• War and other threats of military action often increase uncertainty in the financial market, leading investors to reduce exposure to more volatile assets