Trump’s first week inauguration sparked notable financial market activity, though not all outcomes aligned with expectations. U.S. equities surged 1.7%, delivering the best start for a presidency since Reagan in 1985. However, international markets like Japan (3.9%) and Mexico (5%) outpaced Wall Street, underscoring global investors’ optimism.
The Dollar’s Unanticipated Decline
Contrary to predictions, the U.S. dollar suffered its steepest weekly drop since November 2023. Emerging-market currencies, including the Colombian peso and Polish zloty, surged over 3%, driven by speculation that Trump’s tariff threats are negotiation strategies rather than imminent actions.
Executive Actions Shake Market Sentiment
Trump’s swift executive actions created waves, yet his lack of immediate tariffs on trade partners defied campaign promises. The restrained approach boosted international equities and eased global market fears. Adam Phillips of EP Wealth Advisors observed, “Without new tariffs, global market sentiment improved.”

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Winners and Losers in Sector-Specific Shifts
Key sectors mirrored Trump’s agenda. Oracle soared 14% following his endorsement of a $100 billion AI initiative. Meanwhile, Tesla shares declined amid discussions of ending electric vehicle subsidies. Space stocks rallied on promises of a manned Mars mission, highlighting sector-driven volatility.
Treasury Stability Amid Broader Turbulence
Treasury bonds remained unusually calm, with 10-year yields barely shifting. This rare stability provided investors with a reprieve during a turbulent week. Kathy Jones of Charles Schwab noted the complexity of balancing Trump’s policies, including tax cuts, deregulation, and tariffs.
Commodities Respond to Energy Policies
Oil prices fluctuated after Trump urged OPEC to lower crude prices. However, broader market dynamics, such as robust U.S. economic performance and strong corporate earnings, played a more significant role in commodity pricing.
Cautious Optimism for Future Market Clarity
Despite market volatility, history warns against overinterpreting early trends. As with prior presidencies, initial reactions may reverse. Investors now await clarity from executive orders, Federal Reserve decisions, and corporate earnings to gauge the administration’s broader economic impact.
