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The previous week was marked by significant policy shifts from the White House, creating an atmosphere of uncertainty around official communications. One notable example was President Donald Trump’s inconsistent approach to tariffs with Canada and Mexico, oscillating from a firm stance to a dismissive one and then back to an ambiguous position. In the midst of this turmoil, the President expressed admiration for Elon Musk’s ability to lay off thousands of government employees during a congressional address filled with misleading statements. Just two days later, after a critical Cabinet meeting, Trump announced new restrictions on Musk’s powers.
Amidst a week filled with perplexing events in Washington, one of Trump’s comments stood out for its sheer absurdity. “I’m not even looking at the market,” he remarked on Thursday, a statement that left even his supporters at a loss for words.
A senior aide within the Republican leadership perhaps encapsulated D.C.’s collective reaction best with a simple eye-roll emoji sent through an encrypted messaging app. Another former Trump administration official suggested we had entered a different realm altogether: “We are on Earth 10,000.”
This President, who throughout his first term often cited Wall Street as a barometer of both the economy’s health and his effectiveness as a leader, had previously boasted, “That significant Stock Market increase is my achievement,” in a tweet from 2019. “If Hillary had won – we’d be facing a major crash!”
Thus, despite Trump’s claims on Thursday about the implications of his confusing tariff strategies, the reality remains that this administration is heavily reliant on market performance—its fortunes rise and fall in tandem, and currently, the outlook is decidedly bleak.
Friday’s job report was expected to provide a boost to Wall Street, which had seen gains evaporate since Trump’s election in November. Since its peak on December 16, the tech-heavy Nasdaq has experienced a 10% drop from its high—one that Trump once celebrated. The broader Dow has declined by over 5%. A frantic selloff among investors has positioned the markets for their most challenging week since September. As one political advisor in the financial services sector expressed in frustration during a conference of credit union executives: “We’re exhausted, and it’s still Q1.”
The Friday job report yielded mixed results. The U.S. economy added 151,000 jobs, yet the unemployment rate climbed to 4.1%. While these figures slightly fell short of expectations, the real concern lies in what remains unaccounted for: the wave of layoffs and federal downsizing that have yet to be reflected in the statistics. Furthermore, the report was not robust enough to counterbalance the ongoing tariff turmoil, which is eroding confidence that current investments will yield future returns.
It may not be particularly clever, but it rings true: the so-called “Trump Bump” that followed his return to power has morphed into a “Trump Slump.” An astonishing $3 trillion in wealth gained since Election Day vanished just this past week.
The duration of this downturn remains uncertain. Friday’s job report merely adds another layer to the narrative of Trump’s economic legacy during his second term. Whether it will be viewed as a dismal basement or a shining skyscraper remains to be seen.
However, investors are growing weary of the unpredictability surrounding Trump’s team, where no one seems reliable regarding policy announcements. Billionaire Commerce Secretary Howard Lutnick stated on a business broadcast that the tariffs were here to stay, only to face embarrassment days later when Trump suggested they would be delayed. Then, on Friday, Trump reintroduced the tariffs and threatened an extraordinary 250% duty on Canadian dairy and timber.
Much of this market volatility stems from Trump’s unpredictable behavior and the influence of figures like Musk. As a result, many contractors find themselves anxiously refreshing Musk’s DOGE account, waiting for payment for work that has already been approved and completed.
Importantly, while Washington may be slowly adjusting to the erratic decision-making coming from the White House, Wall Street is decidedly not on board. It has become a crisis that evolves by the hour; decisions impacting the market can shift during phone calls, only to be retracted soon after. Furthermore, we have yet to see an official jobs report that accurately reflects the ongoing cuts across federal agencies, or how potential declines in services, such as food safety inspections or weather forecasting, could ripple through the U.S. and global economies. We are on this rollercoaster, witnessing the exit of those who keep its operations running smoothly.
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