The Fading Promise of the 'Trump Put': Investors Brace for Volatility

Investors are questioning the persistence of the so-called 'Trump put', a perceived presidential safeguard for the stock market, amid recent tariff-induced selloffs. With U.S. President Donald Trump's new policy aggressions, concerns grow about sustained market volatility and limited Federal Reserve support in combating inflation.

Investors are grappling with the extent to which U.S. President Donald Trump will tolerate stock market losses following his aggressive tariff policies, which have significantly impacted Wall Street. The notion of a 'Trump put' that provided a market backstop during his first term is now being critically re-evaluated.

Market indices such as the S&P 500 and Nasdaq have seen substantial declines since Trump's inauguration. There is growing skepticism that Trump's business-centric agenda can continue to mitigate risks, particularly as his trade policies add new uncertainties. Analysts are divided on whether the sharp market declines could push Trump to alter his current course.

Amidst these challenges, there is rising speculation about the Federal Reserve's role in supporting the market. Despite calls from Trump to cut interest rates, the Fed's focus on inflation may limit its immediate intervention, leaving investors without the expected safety net during this volatile period.

(With inputs from agencies.)