U.S. President Donald Trump holds up a hat stating “Trump Was Right About Everything” after signing executive orders in the Oval Office at the White House on Feb. 25, 2025 in Washington, DC.
Alex Wong | Getty Images
The “Trump Bump” — in which stocks and other assets, such as cryptocurrency, jumped after Donald Trump’s election and inauguration — appears to have leveled off.
Nowhere is this clearer than in Tesla shares, which plunged on Tuesday, erasing most of a postelection pop driven by CEO Elon Musk’s association with Trump.
Consumers are also growing worried about the impact of Trump’s tariffs on the economy. A U.S. Conference Board survey showed pessimism around the availability of jobs, business conditions and future income — as well as heightened expectations for inflation in 2025.
The 10-year Treasury yield, which is seen as an indicator of growth expectations, dropped on that news. Stocks continued to slide. If the trajectory doesn’t change soon, we could be facing a “Trump Slump.”
What you need to know today
Nasdaq in the red for 2025
On Tuesday, the S&P 500 fell 0.47% for its fourth consecutive losing day. The Nasdaq Composite lost 1.35%, dragged down by Nvidia’s 2.8% drop, and is in negative territory for the year. The Dow Jones Industrial Average, however, added 0.37%. Europe’s Stoxx 600 index rose 0.15%. Defense stocks in the U.K. rose after the country’s Prime Minister Keir Starmer announced an increase in annual defense spending on defense.
Low consumer confidence
The U.S. Conference Board’s Consumer Confidence Index slipped to 98.3 for February, down seven points and below the Dow Jones forecast for 102.3. This was the lowest reading since June 2024 and the largest monthly drop since August 2021. Consumers’ 12-month inflation expectations jumped to 6%, up from 5.2% the prior month and well ahead of the Federal Reserve’s 2% goal.
Tesla loses most of its Trump gains
Tesla shares slumped 8.4%, dropping the company’s market capitalization below $1 trillion to its lowest level since Nov. 7 — two days after U.S. President Donald Trump won the U.S. Presidential election. The stock has plummeted 25% year to date, compared with the Nasdaq’s 1.5% fall. Some concern involves the company’s performance, while others are specific to CEO Elon Musk, who is spending much of his time in Washington D.C.
Super Micro Computer avoids delisting
Super Micro Computer shares popped as much as 23% in extended trading after the company filed its financial results for fiscal 2024 just in time to prevent being delisted from the Nasdaq. According to the company’s updated and audited financials, Super Micro’s sales more than doubled in its fiscal 2024 to $14.99 billion. Last year, after the company delayed its annual report, it lost its auditor, Ernst & Young, citing governance issues.
Apple plans to invest in U.S.
Apple plans to open a new factory in Texas to produce artificial intelligence servers, as part of a $500 billion investment in the U.S., the company said Monday. In addition to the new Texas facility, Apple said it plans to hire around 20,000 new employees across the U.S. The move comes after Apple’s Chief Executive Officer Tim Cook met with Trump last week.
[PRO] ‘Flesh wound’ for markets
Stocks have been taking a beating in recent days. But that could merely be a “flesh wound,” said Tom Lee, head of research at Fundstrat Global. In other words, this could be a temporary drop from which markets recover, aided by investors buying the dip, among two other market-moving events happening this week. Lee is a notable market bull.
And finally…
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the opening ceremony of the Siliconware Precision Industries Co. (SPIL) Tan Ke Plant in Taichung, Taiwan, on Thursday, Jan. 16, 2025.
An Rong Xu | Bloomberg | Getty Images
Nvidia to report earnings amid infrastructure spending, DeepSeek concerns
Nvidia is scheduled to report fourth-quarter financial results on Wednesday after the bell. It’s expected to put the finishing touches on one of the most remarkable years from a large company ever. Analysts polled by FactSet expect $38 billion in sales for the quarter ended in January, which would be a 72% increase on an annual basis.
But Nvidia’s stock has slowed in recent months as investors question where the chip company can go from here. It’s trading at the same price as it did last October, and investors are wary of any signs that Nvidia’s most important customers might be tightening their belts after years of big capital expenditures.
