Will Trump save the market tonight?
Trump plans to meet with top business executives to discuss market conditions. The S&P 500 index has fallen below the 200-day moving average, and analysts believe the Trump administration may not act quickly to stabilize the market. Treasury Secretary Basant denied "Trump's market support," while Trump mentioned that the economy may go through a "transition period." Nevertheless, some analysts still believe that if the stock market continues to decline, the government may take action. Investment should be approached with caution, and this article does not constitute personal investment advice
Yesterday, the S&P 500 index fell below the 200-day moving average, marking its first entry into what is referred to as the "danger zone" in the market. Today, Trump plans to meet with top business executives.
According to Bloomberg citing informed sources, the meeting will be held in Washington, organized by the Business Roundtable, with participants including CEOs from across the country, as well as heads of major lending institutions on Wall Street.
Cisco CEO Chuck Robbins currently serves as the chair of the Business Roundtable, with JPMorgan CEO Jamie Dimon, Citigroup CEO Jane Fraser, and other banking executives as board members of the organization.
Will Trump Save the Market?
In the past, when the S&P 500 index fell below the 200-day moving average, it was enough to attract intervention from the Federal Reserve or the White House to boost investor confidence. However, this time, analysts generally believe that the Trump administration may not act as quickly to save the market as it has in the past:
- U.S. Treasury Secretary Janet Yellen explicitly denied the existence of a "Trump market support" last week, stating that as the Trump administration implements spending cuts and tariff agendas, the U.S. economy will go through a "withdrawal period";
- Trump himself, in an interview with Fox Business Channel's Maria Bartiromo, did not deny the possibility of an economic recession but stated that the economy will have a "transition period."
However, some analysts believe that if U.S. stocks continue to decline, the Trump administration may still take action. BOK Financial investment strategist Mark Gibbens stated:
"I still believe there is a 'Trump market support,' just at a lower trigger point than we thought at the beginning of the year."
Risk Warning and Disclaimer
The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk