Is the 'Trump Fever' cooling down? Market turbulence triggers concerns about 'Trump's decline'

Market sentiment is changing, and the 'Trump fever' is gradually fading away.

The "Trump Bump" that once drove the stock market and cryptocurrencies soared seems to be cooling down, and market sentiment is turning with it. This change is particularly evident in Tesla's share price performance. Tesla shares plunged on Tuesday, all but erasing the post-election dividends from President Elon Musk's relationship with Trump.

At the same time, American consumers' concerns about the economic outlook have intensified, especially worries about the impact of the Trump administration's tariff policies. According to the latest survey by the U.S. Conference Board, consumers' confidence in the job market, business environment, and future income has declined, and they expect a significant increase in inflation by 2025.

Market concerns are reflected in the decline of the yield on the 10-year U.S. Treasury bonds, which is typically seen as a gauge of market expectations for economic growth. As the stock market continues to slide, investors are starting to worry if the 'Trump Rally' has turned into a 'Trump Slump'.

The US stock market has performed poorly, and the Nasdaq is in annual loss.

On Tuesday, US stocks continued to weaken, with mixed performances in the three major indices:

The S&P 500 index fell by 0.47% for the fourth consecutive trading day.

The Nasdaq Composite fell 1.35 percent, with Huida (Nvidia) down 2.8 percent, putting further pressure on technology stocks. Since the beginning of this year, the Nasdaq has turned into negative territory.

The Dow Jones Industrial Average bucked the trend and rose 0.37%, suggesting that some traditional blue chips still have support.

In the European market, the Stoxx 600 index rose slightly by 0.15%, while the UK's defense stocks performed well as Prime Minister Keir Starmer announced an increase in defense budget.

Consumer confidence hits a new low, with inflation expectations heating up

According to data from the U.S. Conference Board, the U.S. consumer confidence index fell to 98.3 in February, a decrease of 7 points from the previous month, far below the market's expected 102.3. This is the lowest since June 2024 and the largest monthly decline since August 2021.

In addition, consumers' expectations for inflation in the next 12 months have surged from 5.2% last month to 6%, far exceeding the Federal Reserve's (Fed) target of 2%, indicating growing concerns in the market about rising prices.

Tesla's share price plummeted, and its market value fell below $1 trillion

On Tuesday, Tesla's shares tumbled 8.4%, with its market value falling below $1 trillion, the lowest since November 7 last year. The date, just two days after Trump won the presidential election, shows that the stock price rally that was originally driven by political factors has now largely given up.

Tesla is down 25% so far this year, well above the Nasdaq's 1.5% decline. The market is worried about the company's business performance, and it is also interesting to see if Musk's recent frequent trips to Washington will affect his management of the company.

Super Micro narrowly retains its listing qualification

On Tuesday, shares of Supermicro (Super Micro Computer) jumped 23% after hours, mainly because the company submitted its fiscal 2024 earnings report in a timely manner and successfully avoided the risk of delisting by the Nasdaq exchange.

According to the latest audited financial report, Supermicrocomputer's revenue in fiscal 2024 exceeded $14.99 billion, more than doubling annually. Previously, the company was skeptical about its governance structure due to late earnings submissions and the loss of cooperation with auditor Ernst & Young (Ernst & Young). Today, the company has weathered the crisis for the time being, and the market has reacted positively.

Apple (Apple) expands U.S. investment and plans to build AI server factories

Apple announced on Monday that it will invest 500 billion US dollars in the United States and plans to establish a new factory in Texas dedicated to producing artificial intelligence (AI) servers. In addition, Apple also plans to add about 20,000 American employees to further strengthen its business layout in the United States.

This decision was announced after Apple CEO Tim Cook met with Trump last week, indicating that Apple may increase domestic production and investment under government policy influence.

Market turbulence or just a temporary pullback? Analysts: Don't rush to be pessimistic

Market volatility has increased recently, but Tom Lee, principal researcher at Fundstrat Global, said it could be a short-term pullback rather than a market crash. He believes there is still a chance for stocks to rally as investors buy dips and other important market events this week.

The market focus will be on Nvidia's fourth-quarter earnings report released after the market on Wednesday. According to FactSet analysts' forecasts, Nvidia's revenue for the quarter may reach $38 billion, a 72% year-over-year increase. If the data exceeds expectations, it may boost market confidence.

However, in recent months, Huida's share price has stabilized, trading at the same price as in October last year. Investors are concerned about the company's future growth momentum, especially whether major customers will scale back purchases after years of huge capital expenditures, which will affect Huida's growth prospects.

The market outlook is uncertain, and investors need to pay attention to the follow-up development

At present, the market's concerns about the "Trump recession" are still fermenting, consumer confidence is declining, technology stocks are pulling back, and the economic growth outlook is uncertain, making investors more cautious. However, with the release of important data such as Huida's earnings report this week, the market trend may still change, and investors should pay close attention to the latest developments.

This article "Trump fever" fever reduction? Market turmoil sparked "Trump recession" fears first appeared in Chain News ABMedia.