President Donald Trump’s first 100 days in office have been marked by a rollercoaster ride for the US stock market. The market initially soared after Trump’s reelection in November, driven by expectations of a pro-business boom. However, 100 days into his second term, Wall Street has been roiled by unprecedented levels of uncertainty and volatility.
Trump’s inauguration coincided with Martin Luther King Jr. Day, meaning the stock market was closed. Once trading resumed, the market rallied on the expectation of pro-business policies.
One of the pivotal early actions was Trump’s announcement of tariffs on Mexico, Canada, and China, starting February 1. This move was met with mixed reactions, with analysts warning of potential economic disruptions. The stock market’s reaction to the tariff announcements was volatile.
Market turmoil marks Trump’s early term
After an initial rally, stocks began to slide as the reality of the tariffs set in. The S&P 500 reached an all-time high but soon entered a correction, down over 10% from its record high in December.
Investors grew increasingly anxious, leading to significant drops in all major indexes. Throughout the first 100 days, volatility persisted as investors tried to navigate the unpredictability surrounding Trump’s trade policies. Treasury Secretary Scott Bessent attempted to reassure investors, stating that some volatility is normal and healthy.
Nevertheless, Wall Street’s unease was evident, culminating in the S&P 500 recording its worst quarterly performance since 2022. President Trump’s first 100 days have been marked by a tumultuous stock market, driven by the uncertainty of aggressive trade policies. As tariffs began to take effect, Wall Street faced a challenging environment, signaling that investor confidence could wane further if the perceived economic risks materialize.
The coming months will be crucial in determining whether the market can stabilize and regain its footing amidst the trade policy uncertainties.
