Wall Street is turning its back on Trump and showing an economic warning

Again, out again dutyThe dismissals of the mass government, the cuts of funds and the immigration repressions have seriously scared Wall Street, which is emphatically rejecting the chaotic economic agenda of President Donald Trump.

The market that hugged Trump during most of his first term and in the period prior to his second has become the president. He S&P 500 closed in correction territory On Thursday, falling 10% from the maximum of all time, it was established only three weeks ago.

The Dow is also approaching correction. The nasdaq heavy technological fell into a correction More than a week ago.

And the Russell 2000, composed of smaller companies, which are generally more exposed to changing economic winds, an impressive 18.4% of a high success has fallen just after the elections, which was inside a mustache of their record of all time.

Like plain The actions recovered Friday: the Dow increased 600 points, or 1.4%, the S&P 500 was 1.9%higher and the Nasdaq increased 2.4%: the feeling in Wall Street has been overwhelmingly negative, and the shares are still prepared for losses this week. CNN fear and greed index It has become “extreme fear.”

“The stock market is losing its confidence in Trump 2.0 policies,” said Ed Yardeni, president of Yardeni Research.

Instead, investors have invested money in traditional safe shelters such as government and gold bonds. Treasury yields, which trade in prices opposite, have fallen during the last month. And Gold Spot prices on Friday reached $ 3,000 per ounce of Troy for the first time in history.

Merchants have been increasingly concerned that Trump’s policies could inflict serious damage to the economy. Despite Trump’s insistence that the actions are falling due to the inflationary problems inherited by former President Joe Biden, the market was booming after Trump’s November elections in the hope that his promised fiscal cuts and deregulation would boost another economic boom.

But Trump in the months before he would take office threatening massive tariffs in the largest commercial partners in the United States. The Dow, which was close to his record when Trump began publishing messages in Truth Social about tariffs on November 25, reached a record more a week later, but has fallen almost 10% since then. Russell 2000 never recovered.

Gold Surging is among several signs that investors are concerned about the economic perspectives of the United States, Treasure former Secretary Larry Summers said Friday.

“It is a sign of the amount of uncertainty that is being created that in the midst of everything else, the asset that is done is gold,” Summers told Pamela Brown and Wolf Blitzer of CNN. “That is what people do when they have no confidence in people who manage the country.”

Meanwhile, problems They are growing for the economyand Trump’s policies could exacerbate them. On Friday, a University of Michigan Consumer’s feeling report He submerged at his lowest level from the height of the inflation crisis in 2022. Consumer confidence in February registered his greater monthly decrease since August 2021 And further fell in the first two months of any year since 2009, according to the Conference Board Confidence Trust Index.

Consumers do not spend as much as they used to do it, since concerns about the economy weigh on their purchase decisions. Aim, Walmart, Delta airlines, Dick’s Sporting Goods, General Dollar And Kohl’s said in his most recent profits reports than tariffs and inflation are leading people to spend less.

“This market is clearly sick and tired of commercial policy,” said Art Hogan, B. Riley Wealth Management Mercado Strategist. “It feels as if the administration continues to move the stalls. With such uncertainty, it is impossible for investors to have confidence. “

Trump acknowledged that tariffs could cause a “disturbance” and has declined to rule out a recessionsaying that your economic plan could be painful for some at first.

Conventional economists, however, believe that Trump can be minimizing how harmful their policies could be. Uncertainty about tariffs is to paralyze companies that are not sure of hiring and investing. Mass layoffs of federal workers could seriously damage local economies. And immigration repressions could seriously damage medical care, construction and agriculture industries of labor care, construction and agriculture.

Economists JPMorgan alarmingly wrote last week that the US economy now has a 40% chance of falling into a recession this year. That increases from the 30% prognosis by JPMorgan at the beginning of the year. The Bank cited a “less friendly posture for business” of American politics, including a more aggressive commercial war than feared, as well as the “aggressive efforts” of the Efficient Department of the Government of Elon Musk to reduce federal hiring and spending.

“We see a material risk that the United States falls into the recession this year due to the extreme policies of the United States,” Jpmorgan Economists wrote in a note to customers last Friday.

Suddenly ignoring the market

Trump has been Notably calm on actions lately. During his first mandate he routinely tweeted on market records as a sign of the United States economic power.

Visiting the New York Stock Exchange as recently as December 12, Trump described the “very important” stock market in an interview with CNBC.

“The stock market is very, everything, you know, all together, it is very important,” Trump said. “I joked saying that I really bought the building on the other side of the street because the stock market was here. It is a big problem. “

But he has changed his tone when the existences first erased his profits after the insuguration and then his profits after the election.

“You really can’t see the stock market,” Trump said Sunday in an interview with Fox.

“The markets are going to go up and go down,” he said at the Oval office on Tuesday.

“I think that much of the stock market was due to the four really bad years we had, when you look at inflation and all the other problems, I mean wars and inflation and many other problems,” Trump said Wednesday at the White House.

But Wall Street does not like to be ignored, he is trying to send a message to the president. And it’s painful.

Markets that fall can raise a problem in themselves. Seeing markets in red can save consumers’ confidence, because many Americans incorrectly believe that Dow Jones serves as a health barometer of the US economy. But many people also depend on the actions for their retirement funds, and seeing the actions sink abruptly gives them a pause about their financial position.

“Obviously, the stock market can have a significant negative wealth effect if you continue to take an immersion,” said Yardeni. “Trump will have to rethink his idea that it is fine to let the market decrease while experimenting with tariffs and cuts federal payrolls.”

Investors feel that Trump has turned their backs on them. Now they are turning their backs.