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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.