‘Trump bump’ turns to a Trump slump – and there could be further tests ahead with tariffs on Europe

Fuelled by expectations of a Wall Street-friendly policy platform, a “Trump bump” pushed the S&P 500 up 2.5% by the time the ticker tape had been cleared. The rally continued after his inauguration, with the index peaking 6.3% higher by mid-February. Since then, however, a “Trump slump” has sent markets crashing back to where they started, accelerating in the last week of unpredictable moves. Money blog: Pound set for rise against dollar The reality of an economic program built on trade wars saw the S&P hand back all its post-election gains by Tuesday, then fall further as tariffs imposed by…