The stock market has experienced significant turbulence in recent weeks. President Donald Trump’s trade war is causing alarm among investors. The Dow Jones Industrial Average has tumbled 9.1% in the first three weeks of April.
This marks its worst performance for any April since 1932. The broader S&P 500 has plunged 14% over the course of Trump’s first term. It is the worst performance through April 21 for any president since records began in 1928.
Trump has a long way to go to avoid making history for the wrong reasons. The next-worst start to a term for the US stock market was under former President Franklin Roosevelt in 1941. The decline was just over 9%.
Traders have also given up on the US dollar. During Trump’s new term, the US dollar has fallen 5.5%. This is the worst start for the greenback since data collection began in 1974.
Government bonds have sold off sharply as well. The 10-year US Treasury yield rose to 4.4% just a month after it plunged below 4%.
Trade war impacts global markets
As traders pull money out of American stocks and bonds, they’re investing in global markets. The MSCI All World Index, excluding the United States, has risen 2.9% over the course of Trump’s new term. The oil market has also experienced a significant downturn.
US crude oil has fallen 19% during Trump’s second term due to fears of a global recession. This marks the worst start to any presidential administration for US crude since former President Bill Clinton’s second term. Investors seeking a safe haven have turned to gold.
Gold has skyrocketed nearly 25% during Trump’s new term. This is the highest increase during the start of any presidential administration since records began. The International Monetary Fund (IMF) noted that Trump’s trade war is sending the global economy into shock.
They expect rapidly slowing economic growth and rising inflation. Goldman Sachs CEO David Solomon commented on the ongoing uncertainty. “The level of uncertainty is too high.
It’s not productive,” he said. “It will have an effect on the growth of the economy, and we will see that, in my opinion, relatively quickly.”
