In Trump's first 100 days, US markets performed worst since 1970s

In the first 100 days of President Donald Trump’s second term, US markets had the worst performance since 1970s.

This is the result of Trump’s topsy-turvy economic and trade policies that have ranged from an erratic rollout of tariffs to dismantling of the federal government. Collectively, the policies have tanked markets and put the United States on path of a recession.

The markets’ performance in the past 100 days is in sharp contrast to historical trends.

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Since at least the World War II, markets have risen in the first 100 days as presidents have used the first 100 days to set the tone for their term and inspire confidence in the industry and markets.

Markets’ worst performance since 1970s

Since Richard Nixon’s term in the 1970s, the markets have performed their worst in Trump’s first 100 days of the second term.

Since Trump assumed office on January 20, the S&P 500 has fallen 7.3 per cent, Dow Jones has fallen 6.8 per cent, and Nasdaq Composite fell 11 per cent, according to MarketWatch.

During Nixon’s term, the S&P 500 fell 9.9 per cent in 1973 after a series of economic decisions to address inflation led to a recession that lasted till 1975.

Currently, economists have raised odds of a recession in the United States as a result of tariffs, mass-firings in the public sector, and shutdown of a host of government programmes. JP Morgan Chase maintains 60 per cent odds of recession this year and Goldman Sachs maintains 45 per cent odds.

ALSO READ: If history is any guide, Trump’s tariffs are recipe for recession

With the sharp fall in markets, Trump has broken a tradition that goes back to 1920s.

Since at least 1929, the S&P 500 has risen 3.8 per cent on average in the president’s first 100 days and Dow has risen 4 per cent, according to MarketWatch.

The markets’ fall following the Inauguration Day is in sharp contrast to the euphoria in the immediate aftermath of his victory. It was accepted at the time that he would come up with market-friendly policies. As a result, the S&P 500 rose 3.7 per cent between Election Day and Inauguration Day.