The Trump Election Bump Is Over. Tariffs Were the Fatal Blow

[mahatmakanejeeves]

The Trump Election Bump Is Over. Tariffs Were the Fatal Blow.

By Paul R. La Monica
Updated March 05, 2025, 10:51 am EST / Original March 04, 2025, 2:26 pm EST

The Trump administration’s Election Day bump for the stock market is history. The S&P 500 has erased all of its meteoric gains notched since Nov. 5.

Hopes for deregulation, tax cuts, and other fiscal stimulus from President Donald Trump have been replaced by fears that his tariffs on Canada, Mexico, and China will ignite a full-blown trade war. That outcome would most certainly hurt consumers and corporate profits—and revive the economic threat of inflation.

That’s why Wall Street is suddenly worried again, instead of excited about Republicans controlling the White House and Congress. There is little sign of the so-called Trump put—the expectation that he will do what he can to keep the stock market happy.

Instead, Tuesday offered a broad-based, though volatile, selloff after Trump’s tariffs on Canada and Mexico went into effect.

{snip}

[progree]

1. Update: S&P 500 closed Thursday at 5739, down from the election day close of 5783, so the "Trump Trade" is underwater

Last edited Fri Mar 7, 2025, 07:47 AM - Edit history (3)

it closed Thursday March 6 at 5739, down 1.8% for the day,

and down 0.8% from the 5783 election day level,

and down 4.3% from the inauguration-eve level,

and down 2.4% year-to-date,

and down 6.6% from its all-time closing high of 6144 on Feb 19.

The usual pattern -- threaten tariffs and the markets dive, followed by news of delaying or moderating some tariffs and the markets climb. Well it's back down again despite some moderation on tariffs "signalling".

S&P 500
# Election day close (11/5/24) 5783
# Last close before inauguration day: (1/17/25): 5997
# 2024 year-end close (12/31/24): 5882

# Several market indexes: https://finance.yahoo.com/
# S&P 500: https://finance.yahoo.com/quote/%5EGSPC/
    https://finance.yahoo.com/quote/%5EGSPC/history/

[PoindexterOglethorpe]

2. So does this "fatal blow"

mean he's no longer president?

[louis-t]

3. Republicans have never been good for the stock market.

This is what happens when you rule based on an ideology and not by what works. Republicans are not economists. They have a bunch of stupid ideas written on a bar napkin. Their only interest is feeding the rich and acting out their childish hatreds.

[mwmisses4289]

4. Now these idiots are worried?

This is what their contributions bought.

[bucolic_frolic]

5. Tariffs are a form of regulation to suit Trump, just like everything else.

Restrictions everywhere to make people behave like Trump wants them to behave. Voting restrictions, health care restrictions. Trump should do whatever he wants with your country and your equity, but you have to bend the knee and behave. He's a control freak.