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Wall Street Rattled by Trump’s Trade Moves—Dow on Track for Worst April Since 1932
DECK
Investor confidence crumbles amid sweeping tariffs and erratic trade policy; U.S. stocks suffer worst presidential debut in over 100 years.
KEY FACTS
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What: Major downturn in U.S. stock markets three months into President Trump’s second term.
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When: Since Trump’s inauguration, a three-month plunge has shaken investor sentiment.
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Where: U.S. markets with global repercussions; Europe sees relative gains.
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Impact: S&P 500 down 14%—worst start to a presidency since at least 1928.
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Global View: Average international ETFs rose 3.2%; European markets surge on defense spending optimism.
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Causation: Market turmoil linked to ‘America First’ trade stance and NATO uncertainty.
SITUATION SNAPSHOT
Traders on Wall Street watched in disbelief as red numbers flooded the screens, signaling a staggering reversal of the optimism that had gripped markets late last year. The bell had barely rung before losses mounted, driven by fears of escalating trade wars and fading global confidence in U.S. economic leadership.
WHAT WE KNOW
According to Bespoke Investment Group, the S&P 500 has dropped 14% since President Trump’s latest inauguration—marking the most severe three-month decline to start any presidency in modern market history.
Analysts from the firm stated the drop is “by far the biggest decline the index has seen three months into a Presidential term since 1928.” The previous record-holder was during Franklin D. Roosevelt’s third term in 1941, when stocks fell 9% amid wartime uncertainty.
Initial post-election rallies were driven by expectations of corporate tax cuts and widespread deregulation. But those gains quickly unraveled as the administration doubled down on unpredictable tariff policies.
Markets have grown increasingly uneasy over Trump’s commitment to traditional alliances like NATO, further complicating the investment outlook.
WHAT’S NEXT
Economic analysts expect increased volatility as the administration prepares to unveil additional trade measures. Investors will closely monitor upcoming remarks from the Federal Reserve and the Treasury Secretary, while earnings season could add more fuel to the fire. Market strategists are also eyeing global responses—particularly from Europe and Asia—to Trump’s next economic move.
VOICES ON THE GROUND
"This is not the kind of correction anyone was expecting. It feels like the market is sending a 'no confidence' vote," said one investment strategist in New York.
An analyst noted, “The irony is thick—‘America First’ is hitting American investors the hardest.”
CONTEXT
During President Trump's earlier campaign and transition period, markets soared on promises of growth-friendly policies. However, as trade hostilities intensified, those initial gains evaporated.
While U.S. markets plummeted, European stocks rebounded on promises of increased defense budgets and new fiscal stimuli. The iShares MSCI Germany ETF (EWG) climbed 10.8% in the past three months. Italy’s market rose 10.2%, the UK gained 6.6%, and France added 3.7%—all performing far better than the U.S., despite short-term volatility sparked by Trump’s "Liberation Day" tariff declarations.
REPORTER INSIGHT
Covering the financial pulse of the nation this week felt like watching a tide roll back and expose the foundation beneath. The very policies meant to “protect American prosperity” are now pushing investors toward foreign shores, leaving a battered market and rattled nerves in their wake.
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