Following President Trump's election, the stock market initially soared due to expectations of reduced regulation and tax cuts. However, by late February, concerns over the inflationary effects of new tariffs and weak consumer sentiment led to a significant market pullback. The S&P 500 experienced its worst week of the year, dropping by approximately 2 percent, as investors revised their expectations regarding interest rates and economic growth amidst fears of ongoing inflation. This shift indicates a cautionary sentiment in the market, affecting overall economic outlooks.
The market had shown great enthusiasm around the election, predicated on favorable taxation and lighter regulation, but those expectations got ahead of reality.
As anxiety about tariffs and inflation grew, the S&P 500 declined about 2 percent this week, marking its worst week of the year.
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