Trump Downplays Market Swings After Tariff Reversals, Says Indexes Are “Just About Even”

President Donald Trump characterized a turbulent stretch on Wall Street as largely neutral when he landed in Washington on Thursday evening, telling reporters that the market is “just about even” despite days of abrupt tariff threats and subsequent pullbacks. His remark came at the close of a four-day trading week that featured sharp declines on Tuesday, moderate rebounds on Wednesday and Thursday, and renewed pressure at Friday’s opening bell.

Market Performance During the Week

The Standard & Poor’s 500 Index (^GSPC) remains on track to finish the abbreviated week lower, erasing much of the mid-week relief rally that followed the president’s partial retreat from proposed import levies. If losses hold through Friday’s close, it would mark the benchmark’s second consecutive weekly decline. The Dow Jones Industrial Average (^DJI), which the president highlighted as “nearing 50,000,” mirrored the broader market’s intraday swings but also headed toward a weekly fall after Tuesday’s steep sell-off.

Tuesday’s drop was triggered by the administration’s surprise announcement of additional 10 percent tariffs on eight European nations in connection with the Greenland sovereignty dispute. Equity prices rebounded on Wednesday and Thursday after the White House paused that plan, yet the resurgence lost steam as traders reassessed global growth risks and the durability of the policy shift.

Presidential Commentary Throughout the Week

Trump discussed market movements each day from Monday through Thursday, underscoring the weight he places on stock indices as a barometer of economic success. Speaking at the World Economic Forum in Davos on Wednesday, he brushed aside the previous day’s slide, asserting that the “first dip” was temporary and predicting that the market could “double in a relatively short period of time.” Market professionals immediately questioned that forecast. Slatestone Wealth chief market strategist Kenny Polcari, for example, dismissed the projection as inconsequential “noise” in an interview with Yahoo Finance.

The president’s messages earlier in the week combined optimism about past highs with criticism of monetary policy. On both Monday and Tuesday he reiterated that shares would stand even higher if the Federal Reserve had not, in his view, tightened policy too aggressively. By Thursday he labeled the central bank “discredited,” amplifying earlier complaints about Chair Jerome Powell’s stewardship. The Federal Reserve has maintained that its rate decisions are guided by economic data rather than political pressure, a stance detailed on its official website.

Administration’s Position on Tariffs and Market Influence

While Trump emphasized equities throughout the week, other senior officials attempted to distance policy choices from day-to-day price fluctuations. Treasury Secretary Scott Bessent told Politico that the decision to shelve the planned 10 percent duties was unrelated to stock volatility, arguing that the administration’s primary objective remains negotiating favorable trade terms rather than shoring up markets. The White House has not provided a detailed timeline for resuming or abandoning the tariff proposal, leaving investors to weigh the possibility of renewed disruptions.

The administration’s rapid policy pivots contributed to heightened uncertainty among traders. Import-dependent industries braced for higher costs after Monday’s threat, only to pause contingency plans when the proposal was pulled back. Currency markets also reflected the shifting outlook, with the dollar briefly weakening against the euro before rebounding as clarity on the tariff stance emerged.

Potential Impact Going Forward

Market participants will continue monitoring the White House for signals about future trade moves, especially regarding the European nations singled out earlier in the week. Analysts note that inconsistent messaging can amplify volatility, as positions expressed in public remarks may not align with formal policy announcements. In addition, upcoming economic releases—such as next week’s preliminary fourth-quarter GDP estimate—could interact with geopolitical developments to influence sentiment.

Imagem: Finances

For now, investor attention centers on whether the late-week pullback will deepen or stabilize. Bond yields fell in tandem with Thursday afternoon’s equity softness, indicating a modest flight to safety. Commodity prices were mixed: crude oil slipped on concerns about slower demand, while gold edged higher as some traders sought defensive exposure.

Context of Trump’s Market Focus

Since taking office, the president has frequently cited stock performance as evidence of economic stewardship. His statements on the tarmac Thursday reiterated that emphasis: “Market reaction has been good,” he said, framing the week’s net change as effectively flat. The S&P 500, however, was still positioned for a weekly decline at the time of his comments, and Friday’s early dip suggested momentum remained fragile.

The heightened attention to indexes comes as the administration balances domestic economic objectives with international negotiations. The Greenland-related dispute that prompted the latest tariff threat underscores the breadth of issues capable of spilling into trade policy, from territorial matters to broader diplomatic considerations. Each new twist carries the potential to sway corporate planning, capital expenditure decisions and consumer confidence.

As the trading week heads to a close, participants await clarity on several fronts: whether the administration will revive the suspended duties, how the Federal Reserve will respond to evolving economic data and geopolitical pressures, and whether corporate earnings season will reinforce or challenge current valuations. Absent a decisive policy signal, day-to-day market direction is likely to hinge on incremental headlines and technical trading factors.

Crédito da imagem: REUTERS/Jonathan Ernst