Trump’s Global Moves Shake Markets: $5 Trillion Losses and Volatility Surge

In recent weeks, U.S. President Donald Trump’s actions have caused significant shifts in global financial markets, contributing to a dramatic $5 trillion loss in stock market value. This market turbulence stems from various factors, including Trump’s re-ignition of a global trade war and his suggestion that Europe can no longer rely on U.S. military support. These changes have destabilized currencies and raised concerns about the U.S. economy, impacting the value of the dollar and leading to declines in global commodities like Brent crude oil.

The tech-heavy S&P 500 has also taken a major hit, with shares of companies like Alphabet, Apple, and Tesla dropping by 10% to 15%. Tesla, in particular, has seen its stock plummet by 30%, with activists criticizing Elon Musk’s involvement in Trump’s push for government efficiency. As a result, the company has faced protests and public backlash, further intensifying its market woes. Despite this, Trump has defended Musk, calling the protests harmful to the business.

A significant shift in Europe’s defense strategy, prompted by Trump’s signals that the continent should no longer rely on U.S. defense power, has sparked a surge in German defense spending. The German government announced plans to create a €500 billion defense and infrastructure fund, causing the largest rise in Germany’s bond yields since reunification. This move is expected to boost Germany’s economy but also increase its debt levels.

Meanwhile, global market volatility has surged due to Trump’s policies, particularly in the wake of his cryptocurrency reserve plan. Bitcoin’s value took a hit after Trump’s promise to stockpile cryptocurrencies instead of buying new ones, causing the price to drop from its January peak. With mounting volatility across various sectors and regions, analysts are closely monitoring how Trump’s actions will continue to shape both U.S. and global financial landscapes.

SOURCE: REUTERS