Wall Street is on alert again, but this time the culprit is not inflation. From amateur investors to Wall Street veterans, no one really knows what will be the final cost of President Trump's policies. «I knew that the optimistic interpretation of the first year of the Trump administration was wrong.»

Wall Street is on alert again, but this time the culprit is not inflation. In contrast, investors on the capital market, large and small, are included in fear of slowing economic growth in the US. A crack in the stock market has been exposed, and things have taken a dark and volatile turn in just the last two weeks. The S&P 500 index deleted all the gains accumulated from Donald Trump's choice as president, when Wall Street saw his agenda as a «pro-increasing». Meanwhile, the NASDAQ 100 index, dominated by the companies in the technological sector, temporarily entered a correction on Friday, after falling by over 10% in 17 days, as investors give up the shares that have run the market in the last two years. As inflation remains persistent, unemployment increases in the context of Trump administration's efforts to reduce federal staff, and economic growth slows over its anteriorly accelerated pace, economists and financial analysts warn of increasing the probability of what traders are most afraid: interflation. «The stock market is very confused about Trump's tariff plans,» said Jeremy Siegel, Finance professor at the University of Pennsylvania, known among others because he called the actions in the technological sector «a trap for the suckers» in March 2000, when Bula Dot-Com had reached the apoge. «Are all this just a negotiation tactic? We don't know yet. I see an even greater correction coming after this excessive exuberance. ” Investors are at a crossroads, uncertain in which direction to go. This uncertainty is the most pronounced in terms of trumps imposed by Trump and the risk of a commercial war, which has caused major fluctuations in the stock market. The S&P 500 index has registered movements of over 1% in both directions for six consecutive sessions, a phenomenon that has not taken place since November 2020, when Trump challenged the result of the elections. In order to worsen the situation, the mega-tech actions, which have served for a long time as safe shelters and grew despite each challenge, now lead to the top of the declines. Nvidia Corp. He lost almost 1 trillion of dollars in his market capitalization in two months, descending under this threshold on Friday, before opportunistic investors intervened and bring it slightly over. A Bloomberg index of the seven technological giants – Alphabet Inc., Amazon.com Inc., Apple Inc., Meta Platforms Inc., Microsoft Corp., Nvidia and Tesla Inc. – decreased by over 12% in just three weeks. «This is an incredibly difficult market,» said Thomas Thornton, the founder of Hedge Fund Telemetry, who has the largest cash in his portfolio. «People are still far too eager to buy. A solid correction takes place when investors want to go out as soon as possible and no one wants to buy. » From amateur investors to Wall Street professionals, no one really knows what will be the final cost of Trump's policies. Its economic growth plans were based on tax, disregard and energy domination. Rates should have brought back production to the US and create jobs. But so far, the evidence in this regard is few. Even this week, Trump warned that Americans might feel a «little disturbance» because of commercial wars with Canada, Mexico and China. However, it did not provide any indication of the moment when the benefits of these measures will become visible. All this scared the small investors. For the first time in 2022, most individual investors believe that the prices of shares will fall in the next six months, according to a survey conducted by the American Association of Individual Investors. Less than 20% of respondents say they are expecting an increase in prices during this time. «Be prepared for more 'Trump Pumps' and 'Trump Dumps',» said Dennis Dick, the head of the market structure and trader at Triple D Trading, which is based on rumors and titles to counteract the algorithms that follow the trends. «The president never ceases to speak. I feel like I have to look at all directions at the same time. ” The turbulent start of 2025 caused Wall Street analysts to rethink their optimistic predictions for actions at the beginning of the year. The average forecast of twenty -four strategies consulted by Bloomberg estimated that the S&P 500 index will end 2025 at 6,511.36 points. This would involve an increase of about 13% compared to the Friday closure, but the index is already decreasing by about 2% since the beginning of the year. «I knew that the optimistic interpretation of the first year of the Trump administration was wrong,» said Barry Bannister, chief strategist in Stifel, Nicolaus & Co., one of the few strategies who predicted a decrease of actions this year. «He is a disruptor and has to destroy the old order if he wants to create a new one, so it was expected that there was a period of turbulence.»
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