Trump views “equity market performance as a real time barometer of his performance”

A snippet from BMO:

• today’s bear steepening was about pricing out the chance of a US recession in the near-term
• a severe enough equity market correction can change the hiring behavior of business leaders, spending patterns of consumers, and trajectory of the real economy. As the S&P 500 is now back in positive territory for 2025, it follows intuitively that there are lower odds of a market-inspired pullback in spending/hiring that triggers an economic slowdown.
• The tone shift from the Administration implies that the Trump put remains relevant and the President continues to view equity market performance as a real-time barometer of his performance in office.

—

ps ….

A bear steepening refers to a move in the bond market where:

• Long-term yields rise faster than short-term yields,

• Causing the yield curve to steepen,

• And it typically reflects expectations of stronger growth or higher inflation.

This article was written by Eamonn Sheridan at www.forexlive.com.