The first 100 days of President Donald Trump’s second term have been nothing short of a rollercoaster for U.S. stock traders and global investors. Since Trump’s return to the White House, markets have whipsawed in response to dramatic shifts in domestic and foreign policy. For those tracking their portfolios or making daily trading decisions, the volatility has never felt more real or more consequential.
Wall Street’s optimism, which greeted the prospect of a pro-business agenda, rapidly cooled in the face of sweeping tariffs imposed on key trading partners like Mexico, Canada, and China. Stocks plummeted nearly 8% during this stretch, with the S&P 500 suffering a 10% loss in value. At its worst, the market tumbled almost 19.4% from its late February highs—flirting with the technical definition of a bear market and marking the roughest start to a year since the pandemic-fueled selloff of March 2020.
Yet markets remain fiercely reactive to policy headlines. On April 9, when the administration delayed many of the harshest levies, major indexes staged a relief rally, recouping significant losses. The Morningstar US Market Index climbed more than 11% off its bottom, proof that traders are scanning every news flash for signs of a policy pivot or tariff reprieve. If you’re trading today, volatility is the name of the game—each White House statement can trigger a sharp reversal, rewarding nimble investors and punishing those caught on the wrong side.
Beyond the trading screens, the economic backdrop is shifting. While March inflation figures finally showed a drop in prices—welcome news for consumers—the tariffs have cast a shadow over business sentiment. Economists see GDP growth slowing sharply from 2.4% last quarter to just 0.8% in early 2025, with the annual pace dropping to 1.9%. Some analysts warn of a possible recession if trade tensions remain unresolved. Traders, take note: this environment favors defensive positioning and increased attention to sectors sensitive to consumer spending and global supply chains.
Still, there are signs of resilience and opportunity. Unemployment is hovering near 50-year lows and inflation has cooled to 2.4%. The administration’s focus on tax cuts and deregulation—along with historic investment commitments from industry giants like Apple, Nvidia, and Hyundai—could eventually reignite risk appetite on Wall Street. Trump’s emphasis on rooting out waste and slashing federal spending has also caught the market’s attention, hinting at possible fiscal tailwinds.
In these turbulent first 100 days, the winners have been short-term traders who thrive on volatility, as well as investors positioned in companies poised to benefit from reshoring and domestic manufacturing. The strugglers have been those exposed to global supply chains and industries most vulnerable to tariff shocks. As always, for today’s active trader or long-term investor, staying informed and agile is essential. With policy in flux and economic signals mixed, every trading day brings new risks—and new opportunities.
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