Analysis-After 100 days under Trump, investors reassess the allure of 'brand USA'

Suzanne McGee, Saqib Iqbal Ahmed, Davide Barbuscia

Mon, Apr 28, 2025, 3:11 AM 6 min read

By Suzanne McGee, Saqib Iqbal Ahmed, Davide Barbuscia

NEW YORK (Reuters) -A bruising rollercoaster thrust for markets successful the archetypal 100 days of the Trump medication has seen immoderate investors determination distant from American assets, but it remains to beryllium seen whether policies person caused a sustained displacement distant from the United States.

The marketplace has seen important rallies fueled successful portion by commercialized dialog optimism, but investors stay acrophobic astir the longevity and spot of immoderate bounce-back successful plus prices. Some are diversifying to planetary assets oregon making definite they are not overweight U.S. assets arsenic they question much certainty implicit policy.

"The question of whether this has caused irreversible harm to the U.S. markets and economical strategy is the existential one, but we don’t yet person a semipermanent answer," said Liz Ann Sonders, main concern strategist, Charles Schwab & Co. "We cognize that it’s done a tremendous magnitude of harm and that our partners are questioning whether we’re reliable erstwhile it comes to commercialized oregon different things."

A caller moderation successful rhetoric connected commercialized has caused equities to rally backmost adjacent to their April 2 level and a tiny rebound successful the dollar. Still, successful the near-100 days since Trump's Jan. 20 inauguration, the S&P 500 has fallen astir 8% and the dollar scale has slid astir 9%. April 30 volition people the 100th time of Trump's presidency.

The volatility has travel arsenic investors fearfulness that Trump's overhaul of planetary commercialized whitethorn wounded the U.S. economy, causing a rebalancing. Criticism of the U.S. Federal Reserve seat Jerome Powell besides caused a crisp sell-off arsenic investors disquieted astir Fed independence. Some besides fearfulness that determination could beryllium deeper damage.

"When you person a brand, you request to behave successful a mode that respects that brand," Citadel's laminitis and CEO Kenneth Griffin said astatine a Semafor league connected Wednesday, saying that the medication needs to beryllium cautious astir imaginable harm to U.S. Treasuries.

White House spokesperson Kush Desai said the Trump medication is committed to protecting the spot and powerfulness of the U.S. dollar.

“Trillions successful historical concern commitments since President Trump was elected from manufacture leaders including TSMC, Apple, and Roche show resounding assurance successful the U.S. system and dollar nether this administration,” Desai said.

MIGHTY DOLLAR?

Strategists person pointed to a premix of grounds for reallocations from U.S. assets, though they disagree successful whether determination volition beryllium an existent displacement distant from U.S. hegemony.

Jens Nordvig, laminitis of Exante Data, said successful a enactment connected Thursday that piecing unneurotic a mosaic of accusation led him to reason that a "structural displacement successful plus allocations is successful motion" wherever investors astir the satellite are "searching for alternate reserve currencies."