White House downplays recession fears amid stock market concerns
A new poll found that 70% of Americans, including a majority of Republicans, think President Trump’s trade policies will push prices higher.
Scripps News
- The stock market has experienced turbulence, with the Nasdaq entering a correction in early March.
- The S&P 500 is predicted to see a weekly gain after four weeks of losses, while the Dow is on track for its largest weekly gain since January.
After the November 2024 election, the stock market hit an all time high, with conservative media pundits claiming that it showed the promise of a prosperous economy during President Donald Trump’s second term in office. Now the market has hit some turbulence.
Since Trump took office, the stock market has taken a tumble, but the last week saw two days where the U.S. stock rallied. Even with this uptick in the market, the fears of a recession aren’t completely out of the question after the Nasdaq officially entered a correction at the beginning of March.
This came when the tech-laden index closed at least 10% below its record high 20,174 on December 16. Between Feb. 19 and March 13, the Nasdaq hit around 14% below its record high.
Where does the stock market sit?
On Wednesday, the Federal Reserve announced that interest rates would be staying the same helping to rally markets that afternoon, but it was short-lived as investors scattered and the market drifted lower.
Here’s a look at how the stock market is expected to finish up this week, according to USA TODAY reports:
- The S&P 500 is on pace for a weekly gain after dropping for four consecutive weeks
- The Dow is on track for its best weekly gain since January
- Nasdaq remains in the red and is on track for its fifth straight losing week. Its longest stretch of weekly losses since May 2022.
Trump brushes off recession possibilities
Trump, who has been quick to brush off the possibility of a recession in interviews, also brushed aside the stock market sell-off.
“You can’t really watch the stock market. … You can’t go by that,” he said during a FOX interview on March 9.
This is a very different outlook than the president usually has in regard to the stock market. In the last year, Trump has posted multiple times on Truth Social about the market, taking credit for when it was high and blaming the Biden administration when it was low.