Market Backlash Grows as Trump Shrugs Off Stock Slide

Investors Alarmed by Lack of Policy Reversal Amid Tariff Chaos

Wall Street is losing confidence in President Donald Trump’s economic strategy as his second term brings sharp tariffs, spending cuts and market turbulence. Unlike his first term, where even mild market dips prompted policy pivots, Trump now appears unfazed by the S&P 500’s ongoing slide and growing recession fears.

“The market is giving a thumbs down to Trump’s policies,” said veteran analyst Ed Yardeni, noting there is no longer a “Trump Put” to protect equities. “Quite the opposite: his actions are weakening the economy.”

Stocks Dive as Tariff Risks Mount

Markets have turned sharply lower since post-election gains faded, with investors now pricing in a higher-for-longer inflation scenario driven by Trump’s aggressive tariffs. The S&P 500 is tracking its third monthly loss in four months, and major firms like FedEx, Nike, and Micron have sounded alarms over business headwinds.

“We don’t have confidence in how this plays out,” warned Keith Lerner of Truist, citing the Trump agenda’s unpredictability. The Federal Reserve, meanwhile, cut its 2025 growth forecast and now expects higher unemployment and inflation.

‘Liberation Day’ and Market Volatility

Trump has dubbed April 2 as “Liberation Day,” when his reciprocal tariff plan will be unveiled. Analysts fear this could spark even greater volatility, as few details have been provided.

“Calling it Liberation Day does not give me a warm and fuzzy feeling,” said Yardeni. Treasury Secretary Scott Bessent downplayed concerns, calling corrections “healthy,” but investors are increasingly worried there is no off-ramp if markets deteriorate further.

Markets Testing Washington’s Limits

Yardeni sees a return of “stock market vigilantes,” akin to 1990s bond selloffs protesting bad policy. If investors feel ignored, he warns, a deeper selloff could be in store to get the administration’s attention.

Lerner added that the administration appears willing to “stomach market pain” in pursuit of long-term policy goals. “Everyone is trying to figure out: At what point do they care?” he said.