Trumponomics: How US president Donald Trump has triggered a financial roller coaster; shaken global markets in 5 months
Ever since US President Donald Trump took office, five months ago, his economic policies have unleashed widespread volatility across global financial markets, triggering investor pullback, a weakening dollar, and a sharp divergence in global stock performance.
Here is a look at the financial roller-coaster rise:
Wall street
After years of dominating global markets, US stocks are now lagging behind — with Europe reaping the gains.
Since the start of the year, Wall Street's S&P 500 index has risen just two percent, while Frankfurt's main index has surged 16 percent. London and Paris have also outperformed, recording gains of eight and three percent respectively.
Kevin Thozet of investment firm Carmignac attributed the underperformance to President Trump's inconsistent stance on tariffs.
Thozet told AFP that the president's shifting stance on tariffs had fuelled significant uncertainty around how they might affect economic growth.
Dollar
The US dollar has shed 10 percent of its value against the euro over the past six months, its steepest decline in three decades, according to Robert Farago, analyst at British investment firm Hargreaves Lansdown.
While President Trump's tariff policies are seen as the primary driver, mounting concerns over the ballooning US debt, amplified by a costly presidential budget proposal, have further weighed on the currency.
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Though some have floated the idea of the Chinese yuan as a possible alternative to the dollar, ECB President Christine Lagarde recently highlighted the euro's potential for a stronger international role.
Still, significant hurdles remain for any currency seeking to challenge the dollar's dominance.
Debt
American debt has long been seen as a bedrock of the global financial system, with investors worldwide turning to US Treasury bonds as a safe haven.
But that confidence is starting to crack. JPMorgan Chase chief Jamie Dimon recently warned that the ballooning US debt is a "real problem" and that bond markets are entering a "tough time."
At the end of May, yields on 30-year US Treasury bonds crossed the key five percent threshold—an indication of waning faith in America's ability to manage its debt.
"I've always told clients they need US debt if they want an asset that remains intact even in a disaster, but I think that's no longer the case," said Alexandre Hezez, strategist at Banque Richelieu.
Adding to the concern, Steve Sosnick of Interactive Brokers noted that the dollar is weakening even as interest rates rise, "a sign that money is leaving the US."
Oil
Donald Trump made lowering oil prices a key priority in his efforts to curb US inflation.
In April, crude prices dipped below $60 a barrel, their lowest level since 2021. However, this drop was driven less by policy success and more by market fears. Investors, rattled by Trump's tariff moves, anticipated a global economic slowdown that would weaken demand.
More recently, rising tensions in the Middle East have pushed prices back up. The military escalation between Israel and Iran has driven oil back to around $75 a barrel.
Gold and crypto winning the game
Gold has traditionally been seen as the ultimate safe haven during times of uncertainty and 2025 has been no different. Soaring demand has pushed its value up by nearly 30 percent since the start of the year.
Much of this rally has been fuelled by major central banks, which are increasingly turning to gold over the US dollar to shore up their reserves.
At the same time, Donald Trump has thrown his weight behind cryptocurrencies. Alongside his personal investments, his administration has introduced measures to integrate digital assets more firmly into the financial system.
Bitcoin surged past the $100,000 mark for the first time shortly after the US election, capping off a nearly 60 percent gain over the past year.
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