Trump’s tariff blitz sparks worst 100-day stock market drop since Gerald Ford

S&P 500 drops 7.2% under Trump, sparking global volatility.

The S&P 500 has fallen 7.2% since Trump took office, the sharpest 100-day drop since Gerald Ford assumed office in 1974 amidst a recession and oil shock. Contrary to previous Republican presidencies that encouraged optimism with tax cuts and deregulation, Trump's pugnacious trade policies have taken investors by surprise and created market volatility worldwide, the Financial Times reported.

Wall Street had predicted a boom, but the April 2 White House tariff declarations—partial postponements followed—the triggered a tide of uncertainty. JPMorgan strategist David Kelly compared it to "a tussle with all the kids in the schoolyard," warning the US could be overreaching. Bespoke Investment Group's George Pearkes likened the moment to a "Wile E. Coyote" moment, indicating that markets are held in mid-air, uncertain as to the landing's effect.

Foreign investors, who at one time owned a record 18% of US stocks, offloaded an estimated $60 billion of equities since March, Goldman Sachs stated, with European fund managers leading most of the withdrawal. The dollar and US Treasuries have also declined due to the policy uncertainty.

The drama has compelled giant US banks to lower their S&P 500 year-end projections. Morgan Stanley's Lisa Shalett said investors were justified to feel "exhausted" attributing the "on again, off again" tariff policy for eroding market confidence.

Technology stocks, formerly leading the pack, have plunged. Tesla, Alphabet, Nvidia, and Meta—the members of the legendary "Magnificent Seven"—have fallen from darlings of the market to "crowded shorts," Citigroup says. The low-cost Chinese AI start-up DeepSeek's alternative to US models has also eroded confidence in the industry.

Trump has largely discounted the market's reaction, more concerned with accomplishing the undertakings of his protectionist economic platform. As Macquarie strategist Thierry Wizman said, Trump seems to gauge success as a function of action, and not results.