‘Trump Bump’ in Stocks Fades Amid Rising Economic Anxiety
Published On Feb 28, 2025, 12:13 PM
The stock market initially surged following President Trump's election due to expectations of tax cuts and deregulation. However, this optimism is fading as concerns about inflation rise, particularly with new tariffs imposed on foreign goods. The S&P 500 index has recently experienced a notable decline, expected to record its worst week of the year. Investors are increasingly cautious due to declining consumer sentiment and the potential for prolonged high inflation affecting economic growth.
Stock Forecasts
SPY
Negative
Given the recent decline in consumer sentiment and increased concerns around inflation and tariffs, investor sentiment is likely to remain bearish in the short term. Technology stocks, which previously led the market rally, have shown weakness, contributing to the downward pressure on the S&P 500. Traders should be mindful of the economic impacts of tariffs and the Federal Reserve's interest rate stance.
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