Wall Street is buzzing: What does Trump want to do?

Wallstreetcn
2025.03.12 01:29
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Trump's trade criticism of Canada has once again triggered significant fluctuations in the U.S. stock market, with traders facing unprecedented market uncertainty. Although the U.S.-Ukraine joint statement briefly stabilized the U.S. stock market, Wall Street professionals are concerned that Trump's remarks and policies will artificially create a "hard landing" for the U.S. economy

On the 50th day of Trump's second term, the president, who once viewed the stock market as a barometer of his personal achievements, now seems indifferent to Wall Street's reactions.

On Tuesday, just half an hour after the U.S. stock market opened, as the S&P 500 index was stabilizing from the previous day's panic sell-off, Trump suddenly posted a fierce criticism of Canada's trade policies on his social media, causing the stock market to drop again.

According to CCTV News, the U.S. and Ukraine issued a joint statement saying that Ukraine is willing to accept the 30-day temporary ceasefire proposed by the U.S., and the S&P 500 index briefly regained some ground.

Trump's Remarks Trigger Market Volatility and Investor Confusion

Many analysts emphasize that corporate executives hope the Trump administration can provide clear guidance on policy direction. If businesses can confirm specific tariff policies in the future, it may provide more security for investment decisions. However, based on Trump's remarks, uncertainty is likely to persist, and short-term price fluctuations and market sentiment swings may not calm down.

Even experienced investors are facing significant confusion at this time. JJ Kinahan, CEO of IG North America, stated:

Clients are confused, especially younger investors, who find it difficult to adapt to the frequent market fluctuations.

Wall Street analysts indicate that unpredictable tariff changes pose unprecedented challenges for professional traders, significantly affecting market sentiment. Brian Frank, president and portfolio manager of Frank Funds, pointed out:

There is a headline news story every 15 minutes—it's a bit frightening.

In just a few weeks after Trump took office, he frequently criticized Canada's trade policies on social media and in public, leading to significant fluctuations in the S&P 500 index and other major indices. Relevant data shows that although the market has warmed up during certain periods, the overall downward trend remains evident. Jamie Cox, a partner at Harris Financial Group, noted:

Clients feel confused, and the market's reaction shows a lack of trust in Trump's policies.

Traders are facing unprecedented market uncertainty. Peter Tchir of Academy Securities even compared the current volatile market to the financial crisis, suggesting that a further 20% decline may occur. Many analysts express concern that Trump's hardline policies could lead the market into deeper confusion and uneaseThe president of Wealth Alliance, Eric Diton, even expressed with dark humor:

I should have listened to my mother and become a doctor.

Artificially Creating a Hard Landing?

Over the past year, the United States has been trying to achieve an economic "soft landing," maintaining economic growth against a backdrop of low inflation. However, Trump's remarks and policy direction have intensified market concerns about a "hard landing."

Some analysts indicate that Trump's and his advisors' disregard for the potential economic recession may have prevented investors from timely adjusting their investment strategies amid increasing uncertainty. Dario Perkins, an economist at GlobalData TS Lombard, pointed out:

The past optimism seems to have vanished, and the market is generally beginning to express concerns about a recession.

However, some analysts believe that we are not yet at the point of economic recession. George Mateyo, Chief Investment Officer at Key Private Bank, stated:

We still believe this is more of a growth panic rather than an economic recession. This is largely artificially created.

Although the S&P 500 index has stabilized temporarily, the market is still filled with unease. Investors are flocking to safe-haven assets such as short-term government bonds, utilities, and consumer staples, reflecting a cautious attitude towards the future economic outlook