As of mid-March 2025, the first 50 days of Donald Trump's second presidency were marked by a significant downturn in the American stock market, marking the worst start since the 2009 crisis. The S&P 500 index lost 6.4% from its record high, Nasdaq fell by 11%, and Dow Jones decreased by 3.6%. The market capitalization of the S&P 500 shrank by $4.5 trillion since February 20, with the technology sector suffering the most significant losses – $1 trillion in a single day. This crash is linked to Trump's tariff policy, which caused panic among investors.
The introduction of 25% tariffs on imports from Canada, Mexico, and China, which came into effect on March 4, undermined confidence in economic stability. Investors fear a global trade war that could lead to a recession. The fear and greed index fell to 20, and the VIX, Wall Street's 'fear gauge', rose by 60%, reaching 27.84. Tech giants like Nvidia (-30% since inauguration) and Tesla (-14% in a day) became symbols of the sell-off, while essential goods companies showed slight growth.
Trump called these upheavals a 'transitional period', claiming that tariffs would bring jobs back to the U.S. However, economists forecast a GDP contraction of 2.8% in the first quarter. The chaotic implementation of tariffs complicates growth forecasting, and the easing of some restrictions for automakers has only heightened uncertainty. Sentiment on Wall Street has sharply deteriorated: 91% of economists surveyed by Reuters believe the risk of recession is real.
The stock market decline is accompanied by broader economic problems – prices for goods are rising, and Americans joke about "renting chickens" due to the rising cost of eggs. While Trump supporters see this as fulfilling promises, analysts warn: without a clear strategy, markets may enter a 'bear' zone when the decline exceeds 20%. The first 50 days of Trump's presidency have become a test for investors and a signal of instability that could define the U.S. economic course for years to come.
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