The American stock market has been a rugged journey since the election of US President Donald Trump in November.

After achieving record levels in the wake of Trump’s victory, US shares threw trillion dollars amid amazing ads about the customs tariffs and increasing fears of recession.

While Trump has reduced the turmoil as a temporary “transitional period” on the road to a stronger economy, supporters and fullest US Presidents alike, without evidence that he might try to break the stock market intentionally.

What happens with the American stock market?

Trump’s fluctuating economic policies have created uncertainty – something that investors do not like.

The S& P500 normative index, which tracks the performance of 500 of the largest American companies, lost approximately $ 5 trillion at the February 19 summit.

On March 10, heavy NASDAQ decreased by 4 percent-the worst decrease in one day since September 2022.

“With the distinction of uncertainty and a variety of fronts,” said Tara Senkler, director of the Economic Research Center in George Washington.

The index of uncertainty in the economic policy, which produced the Federal Reserve in Saint-Louis based on news coverage of issues related to economic policy, in February has achieved its highest level since the Covid-19 was high in 2020.

The global economic uncertain index in January reached its highest point ever, regardless of May 2020.

Why do some people claim that Trump wants to break the stock market?

There are many unnecessary theories about the reason for Trump’s desire to break down the stock market, but the most important of which is that he is trying to facilitate the payment of the US National debts of $ 36 trillion by reducing interest rates.

Since assuming his post, Trump has expressed concern about the size of debt and called on the Federal Reserve to low interest rates.

In an interview with him recently with Fox News, he claimed that “no one feels confident when interest rates are high, because people cannot borrow money.”

With the presence of debt to GDP (GDP), about 120 percent, the federal debt is close to its highest level since the end of World War II.

It is also expensive – the United States government spent more than one trillion dollars last year on interest payments alone.

Some Trump supporters claimed that he intentionally tries to stimulate the economic pain to force the federal reserve to low interest rates, making the cheapest re -financing of the national debt.

Trump creates the collapse of the stock market. He said last week:

“Trump does not want to do this in the current 10 -year revenues. This is why he is letting the stock market decreases while paying bond prices up,” adding that this will create “short -term pain, long -term gains.”

While the federal reserve makes its decisions independent of the White House and the American Congress, it usually reduces the cost of borrowing during difficult economic conditions to stimulate growth.

When interest rates decrease, the government also pays less returns on US Treasury bonds – which is basically a type of loan to the government – which reduces the cost of interest paid on the debt due.

If the bond returns will decrease, the United States government will be able to pay significantly low benefits payments on debts that need to be re -funded, which is expected to reach about 9 trillion dollars in 2025, according to Axel Funhoff estimates, a professor at the Antweep Management School in Belgium.

“For the best part of the contract, the United States has benefited from the historically low interest rates. Lohoff said at the LinkedIn post in January:” These low prices enabled the government to finance its debts at about 2.7 percent. “

Compared to the cheap borrowing age, current interest rates are much higher: the return on treasury bonds for 10 years and treasury bonds for 5 years 4.3 percent and 4 percent, respectively, on Friday.

Why do some of Trump’s critics say he wants to “buy dipping”?

A different theory of some of Trump’s critics indicates that it deliberately weakens the stock market to reward itself and its supporters, including Wall Street investors and CEOs of Silicon Valley.

Supporters of this theory claim that Trump caused the market to stumble so that he and his allies can “buy a decline” – in other words, buy shares with discount before the market returns.

“[Trump] He intentionally addresses stock markets …. The wealthy friends said that the markets are coming down, that its markets are descending from his wealthy comrades buying the decline, and then a tariff, the stock market returns, it needs to be investigated. “

Does Trump actually want to disrupt the stock market?

Although the Trump administration has reduced the disturbances on the market, it has not given any indication that it really wants to decrease stock prices.

In fact, Trump in the past has often boasted about the performance of the arrows on his watch when the market was optimistic.

Kathleen Brooks, founder of the Mineva Market Analysis Company, said she did not believe that Trump was intentionally trying to cause the market to decline.

“The American climax has reached its climax in November, and since then the American economic data has been moving to a decrease and amazing on the negative side. This means that the bond market had to play annex with the knees,” he told Bruks Al -Jazeera, adding that other origins like Bitcoin also fell from its peak.

“It is not unusual for markets to move in harmony like this. This undermines the opinion that movements in the treasury market are a conspiracy theory. Instead, there are good reasons for decline.”

Some market analysts also suggested that the market is exaggerated and has long been late for a correction – the Wall Street language, a decrease of more than 10 percent from its peak.

Legendary investor Warren Buffett, who is closely monitored by the market movements due to his record that exceeds his contracts of S&P 500, was delivered at least $ 134 billion in stocks in 2024 in a widely interpreted sale process as an indication that the market was very hot.