From Morningstar: 2025-05-02 05:31:00

President Donald Trump’s second term has seen a sharp downturn in the markets, contrary to expectations. The administration’s policies have disrupted global growth, causing stocks to plummet and investors to question the safety of US investments. In the first 100 days, stocks fell nearly 8%, sparking concerns and defensive postures among investors.

Investors faced significant volatility as trade wars and tariff threats dominated the markets. The US stock market teetered on the edge of a bear market, down nearly 19.4% from its recent high. Trump’s tariff announcements sent shockwaves through the market, leading to major swings and uncertainty in equities and other markets.

US government bond yields surged following the tariff announcements, raising concerns about the economy and policy uncertainty. The inflationary impact of tariffs and doubts about the US financial system led to higher yields. This shift in the bond market reflected broader anxieties about the economic outlook and global confidence in US debt.

As stocks faltered, investors turned to gold as a safe haven amid market turmoil. The precious metal reached record highs as uncertainty and economic concerns prevailed. Meanwhile, bitcoin prices struggled during Trump’s first 100 days, trading more like technology stocks than a traditional safe-haven asset.

The market saw a rotation away from US equities towards international markets, particularly in China and Europe. Investors sought defensive positions in consumer staples, which outperformed other sectors during Trump’s first 100 days. Diversified portfolios proved to be more resilient in the face of market volatility, with fixed-income assets providing a buffer against stock market losses.



Read more at Morningstar: 9 Charts on Trump’s First 100 Days in the Markets