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American shares lost more than 7% in the first 100 days of roller coaster from the second term of Donald Trump – the worst start for a new administration since Gerald Ford took over five decades ago.
The S&P 500 of Wall Street decreased by 7.2% since the day of the inauguration while the aggressive trade program of Trump sparked vague volatility which rocked the faith of investors from the perspectives of American growth and fueled concerns concerning an inflation rebound induced by the rate in the greatest world economy. He closed on Tuesday 0.6%.
The last time that the first-rate index, which reached a record in mid-February, fell further in the first 100 days of the president, took place in the second half of 1974 when Ford entered the White House after the resignation of Richard Nixon, according to calculations of the Financial Times based on FactSet data.
American shares were then taken in an extended sale driven by a recession and a rapid increase in oil prices.
Half a century later, Trump's attempts to upset the global trade system by slapping “reciprocal” steep price In most countries, plunged American financial markets into fresh disorders, have said strategists and investors.
“We decided to fight with each child in the playground at the same time,” said David Kelly, world chief strategist at JPMorgan Asset Management. “The markets tell us that there is a doubt as to whether the United States has the advantage when it has taken the rest of the world.”
According to George Pearkes, Macro Pearkes, Macro Pearkes, a macro strategist, Betpoke Investment Investment, investors was breathed by the barrage of trade -related announcements from the White House.
The actions dropped after Trump's pricing announcements on April 2, but recovered a large part of these losses after most of the samples were postponed for 90 days.
“My model for where we are is Wile E Coyote with its legs that turn in the air while trying to understand the size of a cliff that we have just jumped,” said Pearkes.
The drop in the market this year has taken over most of Wall Street investors who had planned a boom in the market under a republican tax cup administration. More than 10 of the largest American banks have reduced their end -of -year price objective in the middle of an exodus of capital to dollars in recent weeks.
Lisa Shalett, investment director at Morgan Stanley Wealth Management, said investors “have the right to feel exhausted”.
Trump's “Liberation Day” rate, Blitz, “catalyzed the chaos of the market”, it added: “Once again, pricing policies again promulgating maximum uncertainty periodically punctuated by declarations of the administration aimed at renovating and de -escalation”.
Foreign investors began the year to have a record of 18% of American shares, but have sold about 60 billion dollars of their assets since the beginning of March, according to Goldman Sachs. European fund managers have led to most of the sale.
Both dollar And US treasury bills were also struck by investors' response to Trump's erratic pricing announcements.
In stock markets, recently high-flight American technological shares have been the hardest affected, both by Trump prices and the emergence of the Chinese AI start-up In depthThis amazed investors in January when he claimed to have built a wide language model for a fraction of the cost of his competitors from Silicon Valley.
In December, Tesla, Alphabet, Nvidia and Meta – members of the so -called magnificent Seven – were among the most popular and appreciated American actions, according to an analysis of Citigroup.
The four have since become “crowded shorts” because investors have reduced their exhibition and, in some cases, have actively started their shares, Citi said in a note to customers this week. “Anyone who was quite on (Magnifice SEVEN) was injured,” said Kelly de JPMorgan.
Asset He himself repeatedly rejected the negative market reaction to some of his pricing announcements, and may have classified his first 100 days “on the basis of knowing if he did what he said, rather than on the fact that the results were good or bad,” said Thierry Wizman, a global strategist for foreign and prices at Macquaie.
