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Between the Trump Administration cancelling millions of dollars of contracts and implementing tariffs we can expect the stock market to stagnate or keep going down as American companies will have less revenue and/or pass the costs on to American customers who are already cutting back on spending. U.S. stocks closed slightly lower on Thursday. 🇺🇸 Selling pressure has intensified in recent weeks after a string of economic indicators signaled the economy and consumer sentiment may be cooling as the Trump administration imposes reciprocal trade tariffs. Accenture shares tumbled 7.26%, its biggest daily percentage drop in a year, after the consultancy firm said the Trump administration's efforts to reduce federal spending have led to delays and cancellations of new contracts.

https://www.reuters.com/markets/us/futures-tick-up-after-fed-holds-rates-steady-2025-03-20/

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Discussion

zhenya 10mo ago

doc, i don't like this guy either but you say some pretty silly things.

you speak about these contracts like they should have remained in place. should taxpayers fund unused subscriptions and unused leases as an example? should a single company be allowed to have 98% of it's revenue generated from non compettiive gov't contracts?

these distortions have wrecked capital formation.

removing the distortions will result in a consolidation of capital to a safe haven until investors feel confident to allocate. what's happening now is they've seen they have been allocating capital to companies that didn't have a real business.

this would have happened under kamala or trump in some form because the bill has come due. the yellen era of selling at the short end means we have to finance $7t this year. the market wasn't going to take that down in any event.