The stock market has experienced significant volatility during the first 100 days of President Donald Trump’s second term. The S&P 500 is down 7.27%, marking the third-worst performance for the index during this period in U.S. history. Initially, the market surged following Trump’s re-election, driven by expectations of a pro-business agenda.
However, uncertainty caused by tariff announcements and unpredictable trade policies has led to market instability. Jonas Goltermann, deputy chief markets economist at Capital Economics, said, “Given the ongoing uncertainty around US trade policy and the economic outlook more broadly, we suspect the going will get tougher from here.”
The market has lost $3.66 trillion in value since Trump’s inauguration, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Terry Sandven, chief equity strategist at US Bank Wealth Management Group, noted, “Policy is overshadowing key fundamentals.
We could still have some weakness in front of us, but at a minimum, we’ve got volatility until visibility around tariffs starts to improve.”
The stock market has been highly volatile this year, influenced by Trump’s fluctuating tariff policies. The S&P 500 hit a record high in February before sliding into a downturn in March when Trump initiated his tariff plans. The market further plummeted in early April after Trump unveiled his “Liberation Day” tariffs, marking its lowest point of the year on April 8.
Market volatility amid Trump’s tariffs
Tech stocks, which previously boosted the market, have broadly slumped. Apple is down 15.66% this year, Nvidia by 18.8%, Tesla by 27.7%, and Amazon by 14.6%.
US Treasuries have also emerged as notable losers during Trump’s first 100 days. Typically considered safe havens during times of stock market uncertainty, Treasuries saw their yields spike in early April, unsettling investors. The US dollar has declined, sparking debate about its stability and preeminence.
The US dollar index has dropped more than 8% this year, raising broader questions about investor confidence in US financial markets. International stocks have fared better as global investors reconsider their US asset allocations. Germany’s DAX index is up 12.6% this year, and Hong Kong’s Hang Seng index has gained 9.7%.
Trump’s trade policies have undeniably led to historic levels of volatility in the stock market, reflected in the worst performance of the S&P 500 during the first 100 days of his second term. As policy decisions continue to create uncertainty, both domestic and international investors are navigating a highly volatile financial landscape.
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