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Opinion
Stephen Gandel

Trump Is Now Bad for the Stock Market

U.S. equity valuations are lower than they were before the election.

Trump bump? Not exactly.

Trump bump? Not exactly.

Photographer: Zach Gibson/Bloomberg

The Trump bump is turning into a significant Trump discount.

That’s been more than evident of late. The S&P 500 Index fell for the first three days of the week, culminating in a 3 percent plunge Wednesday as worries over China’s economy and President Donald Trump’s trade-war maneuvers morphed into a general sense of gloom about the global economic outlook. On Thursday stocks rebounded, but the rockiness has added to a growing sense that the market’s foundation is less than stable, and that Trump’s trade steps are what is testing the cracks.