A major US IT CEO told me on the day of the US presidential inauguration that he expected any trade war to end, even though he would probably face retaliatory penalties.
According to him, “Trump lives by the Dow Jones’ reaction,” or what the markets refer to as the “Trump put”.
This implies that the president would back down after witnessing a decline in the stock market anytime a White House announcement was made that harmed public mood.
Since the president downplayed how much he was influenced by markets in a TV interview, those presumptions have since been disproved.
And only one day after concerns about the effects of Trump’s proposals caused a steep decline in US stock markets.
