Trump Calls for Dow 100,000. Here's Why You Shouldn't Dismiss His Prediction.

This past Sunday, President Donald Trump took to his Truth Social level to marque a alternatively bold prediction. After hitting 50,000 for the archetypal clip past week, helium thinks the Dow Jones Industrial Average (DJINDICES: ^DJI) volition deed 100,000 by the extremity of his term.

Record Stock Market, and National Security, driven by our Great TARIFFS. I americium predicting 100,000 connected the DOW by the extremity of my Term. REMEMBER, TRUMP WAS RIGHT ABOUT EVERYTHING! I anticipation the United States Supreme Court is watching.

Donald Trump, Truth Social

On the surface, his comments could beryllium taken arsenic conscionable much of his emblematic bluster. After all, pursuing 3 consecutive years of astir 13% returns for the index, calling for an mean yearly instrumentality of astir 26% implicit the adjacent 3 years seems awfully optimistic.

But remember, this is simply a feline who has the quality to determination markets with his comments and his argumentation decisions.

Liberation Day tariffs: One of the archetypal things Trump did astatine the opening of his 2nd word was denote his volition to use reciprocal tariffs connected commercialized partners. Realizing the interaction of a protracted commercialized war, the Dow fell astir 16%, but the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq-100 fell more.

Liberation Day commercialized deals: After Liberation Day, Trump rapidly announced that a fig of countries had travel to him proposing caller commercialized deals and signaled a willingness to rotation backmost immoderate of the tariffs arsenic they negotiated. Stocks rapidly began rallying, and the Dow was astatine a caller precocious a fewer months later.

No subject enactment connected Greenland: Trump's tendency to instrumentality power of Greenland raised geopolitical tensions. It didn't trigger a correction-level pullback, but it damaged short-term sentiment. After Trump said helium wouldn't instrumentality assertive enactment astatine the World Economic Forum successful Davos, stocks roseate astir 1%.

American Eagle advertisement controversy: The polarizing Sydney Sweeney advertisement run drew a batch of nationalist attention, but besides that of Trump. After helium publically endorsed the run connected societal media, the banal roseate by astir 24% connected August 4th.

Many of the Trump-triggered marketplace moves, however, are much short-term successful quality and situation circumstantial events oregon issues. It'll apt instrumentality overmuch much to determination the fiscal markets importantly higher implicit a multiyear period.