Stock market progression hindered by Customs concerns and Fed apprehensions, dampening Nasdaq's advancement.
In the four-year tenure of former U.S. President Donald Trump, the stock market experienced a rollercoaster ride, with significant rallies and notable volatility, largely influenced by his statements and trade concerns.
Following Trump's inauguration in January 2017, the stock market continued a post-election rally driven by investor optimism about anticipated pro-business policies such as tax cuts and deregulation. This environment supported gains in major indexes, with the Dow Jones surging past 25,000 by early 2018, the S&P 500 rising more than 83%, and the Nasdaq Composite surging about 152% during his first term, buoyed especially by technology and clean energy sectors.
However, Trump's presidency also introduced substantial market volatility, partly related to trade war rhetoric and concerns. The prospect of "Trumponomics," which involved tax cuts and deregulation, initially buoyed markets with historic highs, such as the S&P 500 reaching an all-time high on an unspecified date (likely early in his term). However, starting late February of that period, markets reversed sharply, facing a correction where the S&P 500 and other equities fell by 10% or more, with some tech stocks associated with AI falling about 20%, entering "bear market" territory temporarily.
Trump's controversial tariffs and geopolitical tensions, such as those in the Middle East, later contributed to derailing market momentum. From January 20, 2025, to June 26, 2025, the market showed modest growth with the S&P 500 growing just 2.41% and the Nasdaq Composite up 2.74%. Financial experts emphasize that markets generally dislike uncertainty, and Trump's frequently shifting trade policies contributed to this volatility.
In recent news, U.S. Treasury Secretary Steven Mnuchin warned of significantly higher tariffs as the July 9 deadline approaches, while Fed Chair Jerome Powell reiterated that a July rate cut is still uncertain. Thursday's report on non-farm payrolls could reignite bets on a rate cut as early as July, with investors anticipating the report with bated breath.
Meanwhile, AMC Entertainment plans to reduce its debt by converting at least $143 million of exchangeable notes into stock, and shares of U.S.-based casino operators rose after Macau, the world's largest gambling hub, reported an increase in gaming revenues for June.
In essence, President Trump's statements, especially regarding trade and tariffs, contributed both to significant rallies early on and to notable volatility and corrections later. While long-term investors saw gains overall, active traders profited by navigating the sharp market movements caused by shifting policies and economic uncertainty.
References: [1] "Trump's trade policy and its impact on the stock market," Investopedia, 2021. [2] "The stock market correction of 2018: Causes, effects, and lessons learned," Forbes, 2018. [3] "The economic impact of Trump's presidency," Brookings Institution, 2021. [4] "Trump's tariffs and their impact on the stock market," The Wall Street Journal, 2021.
The community and employment policies introduced under President Trump's tenure, such as tax cuts and deregulation, contributed to significant rallies in the stock market, as evidenced by indices like the Dow Jones, S&P 500, and Nasdaq Composite reaching unprecedented highs. However, the effects of Trump's controversial tariffs and geopolitical tensions on the global market were also profound, leading to notable volatility and corrections, as seen in the S&P 500 and other equities falling by 10% or more in 2018. These shifts have been a topic of discussion in various sectors, including finance, politics, and general-news.
As the July 9 tariff deadline approaches and uncertainties continue, it remains crucial for financial experts and investors to closely monitor politics, trade policies, and market news to navigate potential market movements and restrictions in sectors like business and technology.
