President Trump’s First 100 Days – U.S. Economy Contracts and Markets React Cautiously

President Trump’s return to office has delivered a stormy first 100 days. His administration’s aggressive tariff policies — introduced on Liberation Day (April 2) — caused a global sell-off. Since inauguration, the S&P 500 is down 7.3%, making this the weakest start to a U.S. presidency since 1974. Markets are now digesting a unique blend of economic contraction, political unpredictability, and earnings uncertainty — a challenging trifecta that makes fact-based investing more important than ever.

Latest figures released today evidence U.S. Economy Contracts for the First Time in 2 Years. The U.S. economy shrank by 0.3% in Q1 2025, marking the first quarterly contraction since early 2022. The surprise downturn was driven largely by a wave of pre-tariff imports, which widened the trade deficit and weighed on GDP. A simultaneous decline in government spending added to the weakness. While consumer spending and business investments held steady, the contraction has stirred fears of a possible recession — particularly with persistent inflation still affecting household budgets. Big Tech Earnings Awaited After Market Close. Markets are also on edge as key tech giants Microsoft, Meta Platforms and Qualcomm prepare to release earnings reports later today. Their current stock prices reflect the nervous mood. These reports are crucial, especially in a market already rattled by macroeconomic weakness. Strong results could stabilize sentiment — while any disappointments may trigger further volatility.