Trump's second term raises investor concerns in market volatility

Investors are feeling uneasy about President Donald Trump's approach in his second term. In his first term, Trump focused heavily on boosting the stock market and would adjust his policies to keep investors happy. Now, things are different. After the recent election, stock prices have fallen. Many investors no longer trust Trump's economic strategy, which includes higher tariffs and government spending cuts. Ed Yardeni, a Wall Street expert, noted that investors are worried because Trump seems less concerned about the stock market this time. During Trump's first term, there was a belief that if the market fell significantly, he would change his policies to help it recover. Now, it appears there is no such safety net. Yardeni mentioned that Trump's current policies could actually hurt the economy. The Federal Reserve recently lowered its growth predictions, pointing to rising inflation and a weaker job market. Keith Lerner from Truist Advisory Services said there is uncertainty about Trump's plans, and many investors feel they are participants in an unpredictable economic experiment. Some Trump officials believe that the current market difficulties are just temporary. Treasury Secretary Scott Bessent claimed that good tax policies and deregulation would ultimately boost the market. He suggested that market corrections are normal and healthy. Under Trump 2.0, the economy faces new challenges due to high tariffs and spending cuts, which could keep interest rates elevated and hurt company profits. Many investors are anxious about Trump's upcoming "Liberation Day," which is the date he plans to implement more tariffs. Investors are worried that if they feel their concerns aren't being heard, they might sell off stocks aggressively. Yardeni compared this situation to a child throwing a tantrum to get attention. Such actions could harm consumer spending and further hurt the stock market. Despite these issues, Trump officials show a readiness to endure market instability, leading investors to question how far the administration might go before caring about the stock market’s health.