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Wall Street’s actions slipped on Tuesday after a dark consumer confidence cycle, investors’ concerns have deepened concerns that Donald Trump prices will eliminate the largest economy in the world.
The S&P 500 Blue Chip index dropped by 0.5% and the Nasdaq composite rich in technology fell 1.4% – with the sale of softening after Sharper decreases earlier during the day.
American actions had increased sharply after the Trump elections in November in the hope that it would adopt pro-enterprise economic policies, pushing the S&P 500 to a record as recently as last Wednesday.
But disappointing relationships on everything, from consumer feeling to sales of houses, have dragged the S&P 500 in the last four days.
The Conference Board looked closely at the measurement of consumer confidence slipped 7 points in February to 98.3, the steepest drop since August 2021 and worse than the 102.5 Wall Street planned.
The short -term perspectives of consumers for the economy have dropped for the first time since June 2024 below the threshold which generally signals an upcoming recession.
At the same time, the report has shown that inflation expectations on average by 12 months increased to 6% against 5.2%.
“This increase probably reflected a mixture of factors, in particular sticky inflation, but also the recent leap of the prices of key foods like eggs and the expected impact of prices,” said Stephanie Guichard, main economist at Conference Board .
Guichard added: “There was a sharp increase in trade and prices. . . In particular, comments on the current administration and its policies dominated the answers. »»
JPMorgan’s economist, Abiel Reinhart, has echoed this feeling, saying: “It seems that political titles are starting to cause withdrawal in feeling.”
Investors are increasing “increasingly uncomfortable” about a growing list of negative economic data and a potential blow for the American growth of unpredictable price ads from Trump, said Charlie McElligott, Derivative Stratege at Nomura.
He added that Nomura’s customers have had to increase their purchases of derivatives called options in recent days, which would become precious if the S&P 500 fell sharply.
Defensive stocks, including the drinking manufacturer, Dr. Pepper and the manufacturer of Colgate-Palmolive toothpaste have both increased by more than 2% on Tuesday while investors were traveling in the market pockets that generally surpass when the economy is cool. Real estate shares, which benefit from a drop in interest rates, have also joined.
The debt of the American government, which tends to increase during periods of increasing market anxiety, has gained price, returning the yields. The 10-year-old treasure yield fell 0.1 percentage points to 4.29%, the lowest level since mid-December.
Technological actions, which have increased in recent years and which generally work well during moments of economic boom, have slipped. Peter Thiel’s data analysis company, Palantant, lost 3.2% and the Applovin digital announcements group lost 5.9%. Tesla fell 8.4%, resulting in its market capitalization below 1 TN.
“This American rotation seems defensive,” said Andrew Lapthorne of general company, who stressed how investors are increasingly moving away from growth actions in the technological sector with “low volatility” actions in health care, public services and restaurants.
Economic figures and low concerns about Trump’s pricing plans also made oil prices on a two -month hollow on Tuesday.
The Brent Brut, the world benchmark, fell 2.1% to $ 73.20 per barrel, while West Texas Intermediate, the American scorer, slipped from 2.2% to $ 69.13.
“The low number of consumer confidence was an event to destroy demand for crude and gasoline,” said Robert Yawger, raw material analyst at Mizuho Securities, an investment bank.
Additional Jamie Smyth reports in New York
