Amid a weeks-long stock market sell-off, the Trump administration is brushing off the declines, attributing the volatility to “animal spirits” rather than fundamental economic issues.
A White House official emphasized that recent actions by business leaders paint a more optimistic picture of the US economy’s future.
Market Turmoil Ignored
The Dow, Nasdaq, and S&P 500 all experienced sharp declines, marking one of the worst days for the stock market since Trump took office.
However, the White House downplayed the significance of the plunge, suggesting that business activity and investment commitments are more reliable indicators of economic health.
Related: Stocks Tumble in US and Asia Amid Trump Tariff Concerns
Business Leaders’ Optimism
In a statement, a White House official highlighted that industry leaders have responded positively to Trump’s policies, including tariffs, with “trillions in investment commitments.”
This, they argued, is a more meaningful measure of economic prospects than short-term market fluctuations.
A Focus on Long-Term Growth
The administration’s stance reflects its belief that the stock market’s recent performance is not indicative of the broader economy’s trajectory.
Instead, they point to strong business confidence and job creation as evidence of sustained growth.
What’s Next?
While the White House remains optimistic, investors continue to grapple with uncertainty over trade policies and their potential impact on economic growth.
The coming weeks will reveal whether business activity can offset market fears or if the sell-off signals deeper economic challenges.
