- Trump's policies triggered sharp reactions from global markets, with stock indices falling, volatility spiking, and investors seeking safer assets
- Major tech firms saw steep share price declines, while gold surged and oil dropped, reflecting deepening uncertainty over the global economy
ISTANBUL
US President Donald Trump's first 100 days back in office have created significant turbulence, particularly within the economic landscape.
Trump's aggressive approach to trade, especially the implementation of widespread tariffs, has caused uncertainty and volatility across global stock and commodity markets, prompting investors to seek refuge in traditional safe-haven assets.
Since taking office on Jan. 20, Trump's policy announcements have frequently rocked international markets.
Central to this economic uncertainty are the sweeping tariffs he imposed in early April — labeled by the president as "reciprocal tariffs" — targeting more than 180 countries.
These tariffs, ranging from a baseline 10% to up to 245% on some Chinese exports, were designed to incentivize companies to shift manufacturing back onto US soil.
The effects of these aggressive trade measures have profoundly impacted major global economic players, notably China and the EU.
Both China and Europe have hit back with retaliatory actions, heightening fears of a prolonged trade war.
China, in particular, responded swiftly by imposing 125% tariffs on American goods, raising concerns about a full-scale economic showdown between the two largest global economies.
As Trump celebrated these tariffs as a pathway to returning “trillions of dollars” back to the US, economists warned that the approach might backfire.
High volatility, historic figures
From Jan. 20 to April 30, the American stock market experienced significant turbulence, frequently plunging into negative territory and wiping away substantial gains from the previous year.
The Dow Jones Industrial Average — a key indicator of America's largest corporations — experienced a notable decline of roughly 8.4%, settling at around 40,500 points by the end of April.
The blue-chip index had dipped dramatically earlier in the month, reaching lows near the 37,600 mark.
Similarly, the S&P 500, another critical barometer of US economic health, dropped approximately 8.2%, closing the period at 5,550 points.
The S&P 500 had briefly fallen below the psychologically significant 5,000-point mark, illustrating the breadth of market uncertainty.
The technology-heavy Nasdaq index bore the brunt of market anxieties, experiencing the largest decline among the major indices.
It plummeted by 11.8% to 17,410 points, with intra-month lows reaching approximately 15,250 points, demonstrating investors' growing apprehension about technology firms and their global supply chains.
The VIX volatility index, often referred to as Wall Street's “fear” gauge, surged dramatically.
It rose an alarming 66.6% to reach a level of 25, spiking briefly beyond 52 points — a record figure for recent years.
Alongside equity markets, currency markets reacted sharply. The US dollar index — which measures the dollar's strength against major global currencies — fell by 8.3%, declining to 99.
Conversely, the euro surged significantly, climbing 9.6% against the dollar and settling at $1.14, compared to $1.04 just 100 days earlier.
Commodities and safe-haven assets spike
With equities suffering and currency markets unstable, investors rushed toward safer investment havens, most notably gold.
Gold prices soared dramatically as uncertainty spread throughout financial markets. Over Trump's first 100 days in office, the price of gold surged by 22.5%, jumping from around $2,700 per ounce in late January to historically high levels exceeding $3,300 per ounce by late April.
In mid-April alone, gold reached a historic peak surpassing $3,350, reflecting mounting fears of global economic turmoil.
Conversely, oil markets faced downward pressure. Brent crude, the global benchmark for oil prices, fell approximately 20%, dropping from nearly $79 per barrel in late January to around $63 per barrel by April's end.
Market analysts attribute this slump partly to concerns that Trump's tariffs would dampen global trade activity, reducing oil demand worldwide.
Bitcoin, another asset closely watched due to Trump's past enthusiasm for cryptocurrency, also witnessed volatility.
Initially buoyed by Trump's campaign pledge to make the US "a crypto capital," Bitcoin sharply declined by around 8.5% during Trump's first 100 days.
Tesla and tech giants suffer steep losses
Perhaps most notably affected by the market downturn were the shares of technology and innovation-driven companies, often referred to collectively as the "Magnificent Seven."
Electric vehicle manufacturer Tesla, whose CEO Elon Musk was among Trump's staunchest financial supporters—contributing more than $130 million to Trump's election campaign—suffered the sharpest losses within this group.
Tesla's shares fell dramatically, plummeting 32% from Jan. 20 to April 30. Although Trump's initial election victory had provided a substantial boost to Tesla shares due to his enthusiasm for tech innovation, the realities of global economic uncertainty and reduced investor confidence took their toll on the company's valuation.
Following Tesla in losses was the semiconductor and graphics processing giant Nvidia, which faced a drop of 22.8%.
Google's parent company Alphabet also suffered a steep decline of 19.7%, illustrating widespread investor concerns about the global business climate.
E-commerce behemoth Amazon was similarly impacted, losing 19.1%, while social media giant Meta fell by 10.4%.
Apple, usually resilient amidst market turbulence, saw its shares dip by 5.4%, and software titan Microsoft declined by 8.2%.
