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America’s grip on global finance is slipping. For over a decade, the country dictated the pace of stock markets, currencies, and interest rates, but now, investors are pulling out. The S&P 500 is struggling, the dollar is weakening, and economic uncertainty is pushing capital into Europe and Asia. Just eight weeks ago, Wall Street was betting on Donald Trump’s return as a catalyst for more tax cuts and tariffs, fueling a rally in US stocks and the greenback. The US economy is slowing, and investors aren’t waiting around to see how it plays out. Trump’s trade war with China, tensions over Ukraine, and Elon Musk’s government-driven cost cuts have injected fresh doubts into the market. Meanwhile, Germany’s massive spending plan is lifting European stocks, bonds, and the euro, while China’s new AI startup DeepSeek is raising doubts about America’s dominance in tech. The once-unstoppable S&P 500 Index, less than a month removed from a record high, just logged one of its worst weeks of underperformance relative to the rest of the world this century. The US share of world market capitalization has also slipped since peaking above 50% early this year. The S&P 500 is badly trailing European benchmarks, not to mention Hong Kong’s Hang Seng Index, which is up roughly 20%. Treasury Secretary Scott Bessent is already warning of a “detox period” as the administration shifts growth away from government spending and onto the private sector. “Could we be seeing that this economy that we inherited starting to roll a bit? Sure. And look, there’s going to be a natural adjustment as we move away from public spending to private spending,” Bessent said on CNBC’s “Squawk Box.” “The market and the economy have just become hooked. We’ve become addicted to this government spending, and there’s going to be a…

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Filed under: News - @ March 9, 2025 8:22 pm