President Donald Trump is not interested in panic in Wall Street. This is the message he sent loudly and clearly on Thursday, sitting in the Oval Office with the correspondents while signing executive orders.
When asked if the temporary suspension for one month on the customs tariff for some imports from Canada and Mexico had any relationship with the stock market, it was immediately dropped.
“The market has nothing to do with,” it is He said. “I don’t even look at the market, because the United States in the long run will be very strong with what is happening here.” He explained – this is not about stocks. It is about trade.
“This is about companies and countries that have separated from this country, our country and the beloved of the United States. We will not live anymore. So, you know, I think this has an impact on the market.”
Smell definitions Wall Street while Trump gives them to them
The stock market had no great week. The main indexes in red, investors are scrambling to see if Trump will do anything to stop the bleeding. Wall Street worked under the idea of ”Trump’s Placement” – the belief that the market will not be allowed to collapse severely. But this assumption is getting weaker after a day.
Instead of contacting commercial tensions, the administration is the opposite. Trump only slapped 25 % on some of the largest trading partners in the United States, and it strikes the market as it hurts. Nasdaq has decreased by 7.5 % since mid -February, bank shares decreased and oil prices decreased. On the other hand, traditional safe havens such as gold and American cabinet links gather.
Despite the disturbances, Trade Minister Howard Lootnick says this is not related to the short -term stock movements. “The president wants American growth and American prosperity, well? In CNBC:” The stock market decreases by half a percent or a percent, and it rises half a percent or a percent, and this is not the driving force of our results. “He believes that interest rates will decrease by 1 % or more, and the stock market will explode later.
Currently, investors are not convinced. Wall Street came to 2025, expecting tax cuts and eliminating restrictions to push the shares up. Instead, they deal with commercial wars and slow growth signals.
Economic warning signs continue
Trump’s tariff force investors to rethink the danger of a fever. We all thought that he might change his opinion in the end as he did during his first term, but so far, Trump is not budging.
For example, the confidence index in the Conference Council, for example, published the largest monthly decrease in February 2021. A survey of manufacturers, which was issued on Monday, published a sharp drop in new requests, as well as a leap in the entry costs.
Meanwhile, Federal Reserve Consultation Follower of Atlanta is a flashing signs of warning and expected the first quarter growth by 2.8 % annually, although other models still show some growth. JPMorgan economists believe that high definitions will slow economic activity because companies pay more to imports and pass these costs to consumers.
However, the American economy is not expected to enter into recession yet. Goldman Sachs expects that the customs tariff will fly 0.2 % of growth this year, which is a small success compared to what Canada and other commercial partners can face.
There is one luminous spot. The Bloomberg US Agregate Bond Index increased by 2.7 % this year, thanks to investors who move to safer assets such as gold. But inflation is still 2 % higher than the Federal Reserve’s goal, which limits the amount of the central bank to reduce prices, as Federal Reserve Chairman Jerome Powell repeated at the post -subtle press conference in FOMC.
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