The White House played down the weekly stock market sale on Monday and insisted that the recent steps of managing directors point out better prospects for the US economy.
“We see a strong deviation between the animal spirits of the stock exchange and what we actually develop from companies and managing directors,” an official from the White House told reporters on Monday afternoon.
“The latter is obviously more sensible than the former that comes onto the market for the economy in the medium to long term,” said the official, to whom anonymity was granted.
In the economy the term “Animal spirits“It is used to describe situations in which human emotions and not pure logic dictate the decisions of investors.
The White House seemed to use the term to point out that the sale of irrational fears and negativity was driven.
However, experts pointed out several factors that prompted investors to hand over stocks, among them, massive 25% tariffs for imports from Mexico and Canada. President Donald Trump imposed these tariffs in the last month and held just to publish them again last week and partially tackle them.
The uncertainty in relation to Trump’s trade policy is the mass shots of thousands of federal employees, with the efforts of the billionaire Trump consultant Elon Musk being supervised.
The result was an abrupt reversal of aggressive optimism and the high risk tolerance, which contributed to the fact that enormous market profits were carried out at the end of last year.
The Dow Jones Industrial Average fell by almost 900 points on Monday and that Nasdaq his worst session has clocked since 2022, while the S&P 500 2.7%lost.
The gloomy trading day expanded and reinforced a sale that has now occurred in the third week.
“You have certainly seen some of the animal spirits who fade the stock marketing rally in autumn,” said Scott Lincicome, Vice President for General Economics and Trade at the Libertary Cato Institute.
“People are now looking for downward risks, potential higher prices and just the uncertainty,” Lincicome recently said in an interview with CNBC.
“And I think that can be attributed directly to the president.”
For his part, Trump has largely stopped pointing to the financial markets as a barometer of the country’s economic health, which he did regularly during his first term.
Instead, the White House has advertised a number of recent commitments from managing directors to invest hundreds of billions in the United States in the coming years.
Some of the greatest promises of such promises come from Applewho announced a investment plan of 500 billion US dollars, Soft bankPresent Taiwan Semiconductor Manufacturing Co. And Eli Lilly.
In a separate explanation on Monday afternoon, the spokesman for the White House said, Kush Desai, these industry leaders reacted to Trump’s election victory and enthusiasm for his economic agenda.
“President Trump delivered historical work, wages and investment growth in his first term in office and will do so again in his second term,” said Desai.
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