U.S. President Donald Trump has eased market concerns about his plans to impose high tariffs on imports, pushing stock prices to new all-time highs. According to Business Insider, investor sentiment, which was previously worried about inflation, has improved following the administration’s initial decisions. These moves helped shift the market’s focus from inflation risks to economic growth prospects.
The year started with a decline in stock prices and a rise in Treasury yields, fueled by rumors of potential tariffs and their economic implications. However, Trump’s recent executive orders have significantly changed the market narrative. Investors are now focusing on pro-growth measures, such as deregulation and tax cuts, which are expected to stimulate economic activity.
The S&P 500 index reached a record high, reflecting growing optimism among market participants. According to a survey by AAII, 43% of investors anticipate further stock market growth over the next six months. This confidence is driven by the perception of Trump’s policies as favorable to businesses, particularly in sectors like technology and manufacturing.
The yield on 10-year U.S. Treasury bonds, which had risen earlier due to inflation fears, has slightly declined, remaining below the critical 5% threshold. This indicates that the market has partly eased its concerns about inflationary pressures.
One notable development was Trump’s announcement of a $500 billion deal between OpenAI, Oracle, and SoftBank. This project aims to advance artificial intelligence infrastructure, providing a significant boost to tech stocks. The initiative has reinforced investor confidence in the tech sector as a key driver of economic growth in the coming years.
Experts highlight that Trump’s policy shift has stabilized the market, which had previously been unsettled by fears of negative impacts from tariffs. Instead, the focus has shifted to growth opportunities, creating a positive outlook for the continued strengthening of the U.S. economy.
