🚨 TRUMP VOWS TO KEEP STOCK MARKET AT “ALL-TIME HIGHS” 🚨
President Donald Trump declared he will maintain U.S. equities at record levels, speaking as the S&P 500 notches its eighth-best first-year post-election rally since WWII and both the S&P and Nasdaq close at fresh all-time highs .
🔑 Key Drivers
🔹 AI Earnings Boom: Mega-cap tech and AI-related profits have overridden tariff fears; Nvidia alone now accounts for ~8 % of the S&P 500’s market cap .
🔹 Tariff Walk-backs: After an April swoon that shaved nearly 20 % from the index, the Administration paused the most severe tariff hikes, unleashing a 36 % rebound from the April low to new peaks .
🔹 Rate-cut Tail-wind: The Fed’s late-2024 cuts and resilient consumer spending have kept corporate earnings growth intact, supporting valuations even as the 10-yr Treasury yield has drifted down to 4.1 % .
🔹 Concentration Risk: The cap-weighted S&P 500 is up 19.6 % in 12 months, while an equal-weight version has gained only 6 %—highlighting narrow leadership .
💡 Why It Matters
🔹 Policy Put: Trump treats equity levels as a real-time report card; expect rapid tariff or fiscal pivots if markets wobble—Treasury Sec. Bessent admits they aim for “America-first policies without incurring market wrath” .
🔹 Volatility Trigger: A single social-media post on China tariffs erased $2 trillion in U.S. market value in one day last October, proving how sensitive highs are to presidential rhetoric .
🔹 Correction Warnings: Wall Street CEOs (Goldman, Baird) foresee a 10–20 % draw-down within 12–24 months as valuations stretch and geopolitical risks linger .
🔹 Global Context: While U.S. indices hit records, markets like South Korea (+66 %) and Greece (+60 %) have out-paced the S&P, showing the rally is not unrivaled worldwide .
Bottom line: President Trump’s pledge to keep markets at all-time highs is backed by AI-driven earnings and policy flexibility, but narrow breadth, rich valuations, and tariff unpredictability leave record levels vulnerable to swift reversals if sentiment shifts.
https://themarketperiodical.com/2025/11/29/trump-faces-crypto-enrichment-claims-as-he-vows-to-keep-markets-at-record-highs/