New York, NY – Stocks experienced a volatile trading session on Friday, struggling to recover from a tough February. The market’s uncertainty was highlighted by wavering investor confidence in President Donald Trump’s economic policies, with Tesla, led by Elon Musk, facing challenges.
At the start of Friday, major indexes showed promise as the latest inflation data aligned with economist forecasts. However, a negative turn in early afternoon trading followed Trump’s exchange with Ukrainian President Volodymyr Zelenskyy, leading to some market instability.
Despite the earlier setbacks, stocks managed to bounce back in late afternoon trading. The Dow climbed 1.4%, the S&P and Nasdaq each gained 1.6% by the close of the session. Overall, February marked a downward trend for U.S. equities, with the Dow, S&P, and Nasdaq all posting losses.
The S&P has experienced a 0.7% decline since Trump’s inauguration and a 3% drop from its recent high. While the market initially responded positively to Trump’s election promises, concerns have risen over the lack of progress towards market-friendly policies.
Wall Street’s initial optimism following Trump’s victory has waned due to uncertainties surrounding his economic policies, particularly aggressive tariffs. This shift has created confusion and instability in the market, deterring investor confidence.
Tesla, one of the largest U.S. public companies, faced significant losses in February, with a 28% drop in share value. Elon Musk’s role in the White House has raised doubts about Tesla’s future performance, contributing to the decline in market capitalization.
As Tesla struggles, Elon Musk’s personal wealth also took a hit, declining by $63 billion in February. Despite this, Musk remains the wealthiest individual globally, surpassing other notable figures like Mark Zuckerberg.
Bitcoin, another asset that surged post-Trump’s election, has also faced challenges recently. The cryptocurrency fell below $80,000, marking a 25% drop from its peak. Similarly to Tesla, Bitcoin’s fortunes have shifted, reflecting the broader market uncertainties.
Market experts like David Lefkowitz remain cautiously optimistic, predicting a more than 10% advance for the S&P by the end of the year. However, the ongoing fluctuations in the market underscore the challenges faced by investors and businesses in navigating an uncertain economic landscape.