DOW Jones continues to fall

Continued erratic behaviour from the USA government has deepened the perceived economic woes of US industry.

While US markets approached Donald trumps second term with optimism and enthusiasm it has seen a quick snap back to the lame duck gloom, Donald Trump began his inauguration surrounded by the richest tech moguls in the USA, it gave a bold statement that his second term was for the empowerment of American industry above all else. Following this brief time of market positivity the US began its trade wars that Donald had heralded as a new start to American Exceptionalism.

While Donald's team quickly began tearing down what it thought were obstacles to the free market (DEI, safety regulations, government grants) the USA and global population quickly reacted with some boycotting companies that followed the administration down this path. Predictably governments around the world reacted to this attack on traditional US allies in an ongoing back and forth of escalating tariffs and threats. The global reaction to Donald's trade wars and blustery speeches to congress can be seen simply in the charts above, the DOW Jone crashing 7.09% in a month. Meanwhile Australia also feels these consequences of being closely aligned to the USA with no easy path forward following decades of increased tensions with China; we have seen a brutal monthly drop of the S&P 200 by 8.33%

Australia has once again been dragged into this American conflict to be hit with tariffs; that Donald himself stated would occur while he was on the campaign trail. Australian fans of Trump have long defended that this wasn't true and he would 'never do that to Australia'; they now sit quiet on the matter while still hoping to use Donald's shadow to gain their own political influence in the country that has been Americas lapdog for decades.

These rather stark hits to the market could all be stopped tomorrow if the USA government chose to tread a more steady and proven path; it wont though. Instead Donald will continue his fiery path forward hurting his own economy and any allies that were to close to move out of the way; the only question remaining now is how far will the market fall?