Some Wall Street strategists told MarketWatch on March 27 that President Donald Trump may be losing some of his ability to reassure investors as U.S. stocks extend their March decline.
The immediate backdrop is a sustained market selloff. The S&P 500 finished Friday down 1.7% and recorded its fifth straight weekly loss, its longest losing streak since May 2022, according to FactSet data cited by MarketWatch. The Dow Jones Industrial Average also fell 1.7% and entered correction territory, while the Nasdaq Composite dropped more than 2% after entering a correction a day earlier.
Why strategists are raising the question
MarketWatch said investors had been relying in part on Trump’s willingness to de-escalate the Iran conflict to limit deeper losses. But as the conflict continued, some analysts said that confidence was weakening.
Barclays analysts wrote that headline fatigue and policy reversals were undermining the so-called “Trump put,” the idea that Trump could help markets recover by signaling a policy shift. StoneX analyst Fawad Razaqzada told MarketWatch that investors appeared to be waiting for tangible proof instead of reacting to Trump’s statements alone.
What markets were watching
According to the report, investors remained focused on the Middle East conflict, the risk to oil and gas shipments through the Strait of Hormuz, and elevated oil prices. West Texas Intermediate crude closed above $101 a barrel, and the Cboe Volatility Index rose above 31. BMO Wealth Management’s Carol Schleif told MarketWatch that markets wanted a framework for stabilization in the region and the reopening of tanker traffic through the strait.
Source: MarketWatch.