Growing worries over Trump’s policies

The “Trump Bump” — in which stocks and other assets, such as cryptocurrency, jumped after Donald Trump’s election and inauguration — appears to have leveled off.  

Nowhere is this clearer than in Tesla shares, which plunged on Tuesday, erasing most of a postelection pop driven by CEO Elon Musk’s association with Trump. Some concern over Tesla involves the company’s performance, while others are specific to Musk, who is spending much of his time in Washington D.C

Consumers are also growing worried about the impact of Trump’s tariffs on the economy. A U.S. Conference Board survey showed pessimism around the availability of jobs, business conditions and future income — as well as heightened expectations for inflation in 2025.

The 10-year Treasury yield, which is seen as an indicator of growth expectations, dropped on that news. Stocks continued to slide. If the trajectory doesn’t change soon, we could be facing a “Trump Slump.”

Nasdaq in the red for 2025
On Tuesday, the S&P 500 fell 0.47% for its fourth consecutive losing day. The Nasdaq Composite lost 1.35% and is in negative territory for the year. The index was dragged down by Nvidia, which reports earnings Wednesday. The Dow Jones Industrial Average, however, added 0.37%. Europe’s Stoxx 600 index rose 0.15%. Asia-Pacific markets traded mixed Wednesday. Japan’s Nikkei 225 retreated around 0.3%, but Hong Kong’s Hang Seng Index soared more than 3%. Hong Kong-listed shares of Chinese electric vehicle makers climbed after Tesla’s Tuesday slump.

Low consumer confidence
The U.S. Conference Board’s Consumer Confidence Index slipped to 98.3 for February, down seven points and below the Dow Jones forecast for 102.3. This was the lowest reading since June 2024 and the largest monthly drop since August 2021. Consumers’ 12-month inflation expectations jumped to 6%, up from 5.2% the prior month and well ahead of the Federal Reserve’s 2% goal.

Tesla loses most of its Trump gains
Tesla shares slumped 8.4%, dropping the company’s market capitalization below $1 trillion to its lowest level since Nov. 7 — two days after U.S. President Donald Trump won the U.S. Presidential election. An analyst is of the view that Tesla’s stock slump portends a future in which the multinational corporation has to work in a nationalist world.

Super Micro Computer avoids delisting
Super Micro Computer shares popped as much as 23% in extended trading after the company filed its financial results for fiscal 2024 just in time to prevent being delisted from the Nasdaq. According to the company’s updated and audited financials, Super Micro’s sales more than doubled in its fiscal 2024 to $14.99 billion. Last year, after the company delayed its annual report, it lost its auditor, Ernst & Young, citing governance issues. 

Cheers to good times
The world’s largest brewer AB InBev reported on Wednesday a 3.4% increase in fourth-quarter revenue to $14.84 billion, handily beating the 2.9% decline to $14.05 billion forecast by LSEG analysts. While full-year sales rose a better-than-expected 2.7% to $59.77 billion, total volumes dropped 1.4% for the year. The company’s brands include Budweiser, Corona and Stella Artois.

[PRO] ‘Flesh wound’ for markets
Stocks have been taking a beating in recent days. But that could merely be a “flesh wound,” said Tom Lee, head of research at Fundstrat Global. In other words, this could be a temporary drop from which markets recover, aided by investors buying the dip, among two other market-moving events happening this week. Lee is a notable market bull.