The S&P 500 concluded the quarter with a 4.6% dip, marking its worst performance in three years. The Nasdaq 100 experienced a similar downturn, dropping 8.3% amid concerns over data center infrastructure investments. Simultaneously, the U.S. dollar’s unusual behavior has raised apprehensions about America’s policy shifts, potentially opening avenues for rival currencies.
Trump’s ongoing trade war continues to spark worries about a potential U.S. economic stall. While most economists don’t foresee a recession within the next year, the probability of a contraction has increased. The International Monetary Fund (IMF) has also voiced concerns, stating that the uncertainty surrounding Trump’s threatened tariffs could negatively impact global economic activity, weakening consumer and investor confidence. China’s factory activity shows growth, but retaliatory tariffs add more economic uncertainty.
Domestically, a recent poll indicates that nearly half of Americans approve of Trump’s immigration policies, but disapproval rates remain higher on most other issues, especially tariffs, with 60% of Americans disapproving of his trade tactics. A significant portion of his tariff orders may also breach federal laws and the U.S. Constitution, potentially leading to a Supreme Court decision.
