US Stock Market Decline and Global ETF Performance Comparison: Analysis of World Market Trends After 'Liberation Day'

 

US Stock Market Decline and Global ETF Performance Comparison: Analysis of World Market Trends After 'Liberation Day'

Global ETF Performance Comparison After Trump's 'Liberation Day'



The chart above shows the performance comparison of country ETFs since Trump's inauguration day (January 20, 2025) and the so-called 'Liberation Day' (April 2, 2025). Here, 'Liberation Day' refers to the date related to President Donald Trump's tariff plan announcement, which has had a significant impact on global markets.

Looking closely at the chart, we can see that the US SPDR S&P 500 ETF (SPY) has declined by -6.6% since April 2, ranking as the third-worst performer among 45 country ETFs worldwide. This serves as evidence that President Trump's new trade policies are having an immediate negative impact on the US market.

Analysis of Country ETF Performance Rankings

Markets in Decline

While the US ETF (SPY) has fallen by -6.6% since April 2, China's iShares MSCI (MCHI) has also declined by -6.0%, showing a similar downward trend. This suggests that the trade tensions between the US and China are negatively affecting markets in both countries. Additionally, Vietnam (VNAM) showed the largest decline at -7.6%, and Taiwan (EWT) was hit hard with an -8.6% drop.

Looking at performance since inauguration day (January 20), the situation for the US ETF appears even more severe, with a decline of -11.8%. This indicates ongoing uncertainty in the US market since the Trump administration took office.

Markets on the Rise

Interestingly, some emerging markets have shown an upward trend since 'Liberation Day.' Mexico's iShares MSCI (EWW) recorded a gain of +6.4%, while Argentina's Global X MSCI (ARGT) saw a +6.0% increase. India (INDA) and Japan (EWJ) also showed gains of +3.8% and +1.5%, respectively.

This indicates that despite global trade tensions, some emerging markets and Asian markets are demonstrating relatively strong resilience.

Remarkable Performance of Poland and Greece

One of the most striking aspects of the chart is Poland's ETF (EPOL) showing an impressive +32.5% gain since inauguration day. Greece (GREK) also demonstrated strong growth at +21.4%. This highlights how economic performance can vary significantly among countries within Europe.

Mixed Performance in Asian Markets

Asian markets showed mixed results. While Japan rose slightly by +1.5%, China fell by -6.0%. This is consistent with trends from 2023, when Japan's ETF (EWJ) rose by 17.11% year-to-date due to the performance of large-cap stocks.

South Korea (EWY) remained almost unchanged at +0.3%, and Indonesia (EIDO) saw a slight increase of +0.2%. In contrast, Hong Kong (EWH) recorded a significant decline of -5.2%.

Trump's Tariff Policy and Its Impact on Global Markets

April 2, known as 'Liberation Day,' is associated with President Donald Trump's tariff plan announcement. According to reports from The Guardian, this plan caused a £4 trillion global market collapse and has been compared to the 1929 Wall Street crash due to concerns about a global recession.

This situation has had widespread effects not only on the US market but also on global markets, with major economies like the US and China experiencing significant downturns.

Investment Implications

This data provides important insights for investors. In the current global trade tension environment, some emerging markets or specific European countries may offer better investment opportunities than major markets like the US and China.

Furthermore, the importance of portfolio diversification is emphasized to prepare for short-term market volatility. By diversifying investments across various regions and countries, investors can mitigate the risk of decline in specific markets.

Continuous monitoring will be necessary to track how these market trends might change with additional economic policies from the Trump administration and shifts in global trade relationships.

Source: https://x.com/bespokeinvest/status/1914782759416955283

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