Investors cheered Donald Trump's election victory in November, bidding up stocks to record highs in anticipation of tax cuts, deregulation, and a business-friendly Washington. Trump's on-again, off-again approach to tariffs has thrown cold water o🦋n that o🅰ptimism in recent weeks. 

A Rough Start to Trump 2.0

The 澳洲幸运5官方开奖结果体彩网:S&P 500 is off to its worst start for a presidential term since 2009, when Barack Obama entered the White House in the midst of the 澳洲幸运5官方开奖结果体彩网:global financial crisis. The benchmark index had, as of Tuesday's close, fallen more than 7% since Trump was inaugurated for a second term on Jan. 20. The tech-heavy 澳洲幸运5官方开奖结果体彩网:Nasdaq Composite has had it even 💟worღse; it was down more than 11% before rebounding slightly on Wednesday. 

The stock market has been shaken in recent weeks by Trump's tariffs, which many economists have warned 澳洲幸运5官方开奖结果体彩网:could reaccelerate inflation. The levies, and the unpredictable way they've been rolled out, have also upended 澳洲幸运5官方开奖结果体彩网:business leaders' expectations for the U.S. economy, threatening to slow hiring and investment. Finally, Trump's tariffs have eroded many everyday Americans' 澳洲幸运5官方开奖结果体彩网:confidence in the U.S. economy. 

Ultimately, the risk that tariffs usher in a period of 澳洲幸运5官方开奖结果体彩网:stagflation, in which growth is slow and inflation high, has offset most of the optimism on Wall Stree🐼t about Trump's re🐟gulatory and tax agendas. 

Trump Cites 'Some Disturbance' to Economy, Markets

Trump hasn't done much to stabilize markets in the last week, a notable departure from his first term, in which he regularly invoked a strong stock market as a sign of his success. Over the weekend, Trump declined to say whether he thought the U.S. could enter a 澳洲幸运5官方开奖结果体彩网:recession this year and, when asked about the market's reaction to his policies, said, "You can't really watch the stock market." 

Trump and his Cabinet members have characterized the economic turmoil some forecasters see on the horizon as "a detox period," "a period of transition," and "some disturbance." But what looks like "some disturbance" in Washington looks like a recession to many on Wall Street. Since Trump's inauguration, stocks in traditionally 澳洲幸运5官方开奖结果体彩网:defensive sectors like consumer staples and healthcaꦛre have risen, while recession-sensitive sectors like 💝consumer discretionary and financials have slumped. 

Real-estate stocks have gotten a bittersweet reprieve. Interest rates tumbled recently in large part because 澳洲幸运5官方开奖结果体彩网:fearful investors fled risk assets for safe h♛avens like Treasurys, causing their yields and consumer interest rates to fa🧜ll. 

Post-Election Optimism Has Waned

Trump's re-election unleashed 澳洲幸运5官方开奖结果体彩网:animal spirits on Wall Street, fueling a sharp rise in 澳洲幸运5官方开奖结果体彩网:growth stocks, especially of companies expected to benefit from 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI). Those stocks, lifted by po♔st-election ꧅optimism, have been some of the hardest hit by Wall Street's newfound pessimism.

Tesla (TSLA) stock stands out as a prime example. Shares 澳洲💃幸运5官方开奖结果体彩网:shot up in the wake of🍰 Trump's election as investors bet the electric vehicle maker would benefit from CEO Elon Musk's proximity to the president. Trump promised to 澳洲幸运5官方开奖结果体彩网:end government support for electric vehicles and promote their gas-powered competitors, yet the stock continued to climb. That was in part because Musk said he would 澳洲幸运5官方开奖结果体彩网:launch a robotaxi service and turn �🦩�Tesla into an AI powerhouse, all of which Trump was expected to assist with. 

Since Trump's inauguration, Tesla's stock has been battered by his 澳洲幸运5官方开奖结果体彩网:aggressive tariff policies, concern Musk is 澳洲幸运5官方开奖结果体彩网:stretched too thin with corporate and government work, and a 澳洲幸运5官方开奖结果体彩网:consumer backlash against Musk's political influence. The stock, as of Monday, had 澳洲幸运5官方开奖结果体彩网:given up all of its post-election gain🐷s. 

Trump says he's not paying attention to the stock market, but he may have noticed Tesla's stock swoon. The South Lawn of the White House resembled a Tesla showroom on Tuesday when Trump inspected several models and 澳洲幸运5官方开奖结果体彩网:said he was buying one as a show of support for Musk. 

"This man has devoted his energy and his life to doing this," Trump said of Musk’s work with the Department of Government Efficiency (DOGE), "and I think he's been treated very unfairly by a very small group of people."

Tesla was 澳洲幸运5官方开奖结果体彩网:the best-performing stock in the S&P 500 on Wednesday.