How Donald Trump's actions influence market fluctuations
Financial markets are sensitive to anything that can affect the economy: political decisions, international events, or statements from influential leaders. Donald Trump, former President of the United States and a highly publicized political figure, often provoked immediate reactions in the markets through his actions or statements.
1. Announcements on social media
When Donald Trump was president, he often used Twitter to communicate. Sometimes, a simple tweet could cause stocks to rise or fall. For example, when he criticized a company, its stock would lose value. Conversely, if he praised a sector or a company, it could drive prices up.
2. Trade policy
Trump led a trade war with China by increasing taxes on imported goods. This created a lot of uncertainty in the markets, as companies did not know how this would affect their costs and sales. In general, the more uncertainty there is, the more unstable the markets become.
3. Economic decisions
Announcements regarding tax cuts or investments in infrastructure often reassured investors, as this meant more money in circulation and possible economic growth. This often led to an increase in U.S. stocks.
4. Geopolitical tensions
When Trump took strong positions against certain countries (such as North Korea or Iran), it sometimes created fears among investors. The fear of conflicts or political instability can cause markets to decline.
In summary: The decisions and words of Donald Trump can influence the stock market, as they affect investor confidence. If his actions inspire confidence, the markets rise. If they create uncertainty or fear, they fall.