It seems the honeymoon is over for President Trump, as far as the markets are concerned. This last week, traders showed their concerns over the president’s policies and executive orders by selling stocks and moving to the safety of cash and bonds. The last few weeks have been volatile as questions about how effective Trump would be during his tenure as president. In traders’ minds, his recent actions weren’t very promising.
The declines were in spite of some pretty decent economic data. Consumer, labor and manufacturing metrics all came in rather bullish – although many were still lower than their last readings. Those slight dips added to the week’s uneasiness.
Earnings data for the week came in mixed as well. Earnings at some of the major bellwethers showed lower profits, revenues and weaker guidance figures.
Topping it off was the uneasiness surrounding the Federal Reserve and its latest FOMC/interest rate decision. While the Fed did pause, investors remained unsure about what the Fed would do.
All in all, the ‘Trump bump’ has quickly turned into a roller coaster.
Make sure to check out last week’s Market Wrap.