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Trump's economic policy in focus: danger of a global crash!
The US economy is facing challenges: Trump, inflation, market declines and possible trade conflicts are shaping the situation.
Trump's economic policy in focus: danger of a global crash!
The situation on the US markets has deteriorated dramatically in recent weeks. The S&P 500 has quickly lost all of its value since Donald Trump's election on November 5, while the Nasdaq Composite has fallen 13 percent since mid-February. These developments are accompanied by rising inflation expectations, which are putting additional pressure on the markets.
The regional central bank of Atlanta forecasts a decline in gross domestic product of 2.4 percent for the first quarter of 2025. Trump's trade policies are increasingly seen as potentially damaging to the US economy. Trump also needs revenue from tariffs to push major tax reform through Parliament that will benefit both businesses and employees and is aimed at stimulating the economy. However, there are also concerns that the current situation could further deepen the economic crash, which could affect not only the US economy but also the global economy, such as Mirror reported.
Trade conflicts and market movements
On Wednesday, the Nasdaq Composite closed up 1.22 percent at 17,648.45 points, while the S&P 500 gained 0.49 percent to 5,599.30 points. The Dow Jones Industrial Average, on the other hand, fell by 82.55 points (0.2%) to 41,350.93 points. The technology sector, which fell over 3 percent last week, led the markets higher again. Particularly notable price gains were recorded by Nvidia (+6.4%), AMD (+4%), Meta Platforms (+2%) and Tesla (+7%).
Consumer prices rose 0.2 percent month-on-month and annual inflation was 2.8 percent, below market estimates of 0.3 percent and 2.9 percent. Core inflation also increased by 0.2 percent and stood at 3.1 percent year-on-year, which was also below expectations. President Trump's steel and aluminum tariffs went into effect the same day, prompting a response from Canada, which announced 25 percent retaliatory tariffs on more than $20 billion in U.S. goods. The European Union also plans to introduce counter tariffs on US imports worth $28.33 billion in April. Experts are expressing concern about the possibility that these escalating trade tensions could lead to a recession in the US NBC News reported.