U.S. President Donald Trump expressed confidence that "markets, stocks, and the nation will thrive," but the New York Stock Exchange appears to be showing the opposite trend.
On the 27th (local time), according to Bloomberg News, the New York Stock Exchange is facing its worst performance in half a century, just days before Trump's 100th day in office (on the 29th). The Standard and Poor's (S&P) 500 index fell about 8%, marking the poorest initial performance since President Gerald Ford's administration in 1974. During the same period, the Dow Jones Industrial Average and the tech-heavy Nasdaq index also saw declines of 7.76% and 11.45%, respectively.
By sector, stock price declines were pronounced in consumer goods and the information technology (IT) institutional sector. According to Bloomberg News, major corporations such as ▲Deckers Outdoor ▲Teradyne ▲Albermarle ▲Tesla ▲United Airlines ▲Delta Air Lines ▲Norwegian Cruise Line have been identified as significant victims. Consumer goods and semiconductor industries are under pressure from rising costs due to high tariff policies, while the travel industry is increasingly concerned about weakened consumer sentiment amid economic slowdown.
As a result, corporations preparing to announce first-quarter results are revealing market uncertainties by frequently lowering guidance or presenting multiple performance forecasts. United Airlines has offered two earnings guidance scenarios in anticipation of a possible recession, while some corporations have begun adjusting investments and employment in preparation for an economic downturn.
Experts point out that President Trump's trade policies are exacerbating uncertainty across the economy. As trade negotiations with key countries such as Vietnam and Canada have hit a deadlock, corporations' investment and employment plans are shrinking, and consumer spending sentiment is also weakening. Global investment bank UBS forecasts that the profit growth rate of S&P 500 corporations will essentially remain at "zero (0)" this year due to the effects of tariffs.
There are also indications that President Trump’s unpredictable actions, such as unexpectedly imposing tariffs on trading partner countries and then partially exempting or reversing them, have heightened market volatility. Right after the announcement of tariff measures earlier this month, the S&P 500 index plummeted by more than 10% within two days, and the market has lost its direction amid subsequent news of postponements causing a sharp rise.
Mark Malek, Chief Investment Officer at Sibirs Financial, commented that "the S&P 500 index is witnessing the seventh fastest decline since the Great Depression in 1929," and called it a clear example of the risks that policy uncertainties pose to the market.
Meanwhile, market instability is ongoing. Recently, speculative short positions have surged in the S&P 500 futures market, and foreign investors have been disposing of large amounts of U.S. stocks since March. In light of this, Deutsche Bank, Germany's largest bank, has retracted its positive outlook for the U.S. stock market this year, and the second-largest bank in the U.S., Bank of America (BofA), advised investors to "take advantage of rebounds as selling opportunities."
Amid this turmoil, Wall Street is seeing a strategy to selectively buy undervalued high-quality growth stocks gaining traction. Jim Warden, Chief Investment Officer at Wealth Consulting Group, noted, "I am closely watching the healthcare, finance, and essential consumer goods sectors," while emphasizing that "given the likelihood of continued market volatility in the near term, a cautious approach is necessary."