Why US Stocks, Bitcoin Are Struggling In Trump’s First Few Weeks In Office
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Market Mayhem: The Weakest Start for US Stocks in 20 Years
It’s been mere weeks since Donald Trump took office on January 20, 2025, and the US stock market is already showing signs of distress. The S&P 500 index has suffered its worst start in over two decades, with the Nasdaq 100 Index down a staggering 4.2% in the first few weeks of the new administration. We are left wondering: [Why US Stocks, Bitcoin Are Struggling In Trump’s First Few Weeks In Office?]
Fear and Uncertainty Fuel the Fire
A significant contributor to this market turmoil is the growing concern over inflation. The Conference Board’s consumer confidence index, a crucial economic indicator, witnessed its largest monthly decline in February since August 2021, further exacerbating worries about rising price pressures. This has eroded investor confidence, pushing the Fear & Greed Index into the extreme fear zone for the first time since December 2024. Investors are increasingly cautious, and this unease is not limited to the equities market alone. [Why US Stocks, Bitcoin Are Struggling In Trump’s First Few Weeks In Office?]
The Cryptocurrency Conundrum: Bitcoin’s Plunge
Bitcoin, once the darling of the crypto world, has taken a massive hit, plummeting 16% in the past month and currently trading around $88,000. Gone are the days when it reached a peak of $1,06,000. This stinging decline can be attributed to a combination of factors, including the broader market uncertainty, regulatory concerns, and the specter of inflation. The LLM (Large Language Model) launched by DeepSeek has also raised red flags, sending shockwaves throughout the cryptocurrency markets.
The Retail Sector Rattled
Riding high on the wave of optimism surrounding Trump’s business-friendly agenda, retail giant Walmart issued a warning about slower sales growth in 2025, sparking jitters about an economic slowdown. As a result, investors are seeking safer haven assets, such as government bonds, despite the historically low yields. The sky-high valuations of many technology stocks have caught their attention, and investors are scrambling to adjust their portfolios accordingly. Why US Stocks, Bitcoin Are Struggling In Trump’s First Few Weeks In Office? Can we find the answers in the elusive balance between laissez-faire economics and the unpredictable whims of the market?
Globally, A Different Story Unfolds
While US stocks and Bitcoin are reeling, global markets have demonstrated remarkable resilience. The European STOXX 600 Index has surged nearly 10% in 2025, and Chinese equities have outperformed the US market. China’s tech sector, buoyed by the launch of DeepSeek’s LLM, is witnessing significant growth. European tech companies, bolstered by the ongoing developments in Ukraine, are also reporting improved performance. Can this distant market singularity be a harbinger of a new dawn, or is it just a fleeting reprieve? Why US Stocks, Bitcoin Are Struggling In Trump’s First Few Weeks In Office? Where do we go from here?
In conclusion, the first few weeks of the Trump administration have been marked by intense market volatility, with the S&P 500, Nasdaq, and Bitcoin all taking a hit. The roots of this turbulence can be traced back to worries over inflation, investor uncertainty, and broader market jitters. As we navigate this period of uncertainty, it is essential to keep a watchful eye on the forces shaping the market and the cyclical forces at play. Why US Stocks, Bitcoin Are Struggling In Trump’s First Few Weeks In Office? Only time will tell, but one thing is certain: the road ahead will be filled with twists and turns, keeping investors on their toes.
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