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11.03.2025 02:32 PM
Trump's meeting with Wall Street leaders set to stabilize market

Amid a sharp decline in US stock markets, President Donald Trump will meet with chief executives of major companies today as industry leaders try to navigate the uncertainty surrounding widespread tariffs and market sell-offs driven by recession fears. Trump is expected to inquire about the state of the economy and the outlook for the coming months, with the aim of reassuring investors and the public.

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The White House hopes the meeting will demonstrate the administration's confidence in the stability of the economy, despite fluctuations in the stock market. The Trump administration stresses that key economic indicators such as employment and consumer spending remain strong.

However, experts point out that growing concerns over the trade war with China and its potential impact on the global economy are undermining investor confidence. Uncertainty about global economic growth continues to drive capital outflows from the equity market, contributing to the recent sharp decline in stock prices.

Trump's meeting with business leaders will serve as a crucial test of the administration's ability to stabilize the situation and convince markets that the US economy can withstand external shocks.

According to experts, the meeting with the Washington-based Business Roundtable will include executives from major companies across the country, including the heads of Wall Street's credit giants.

Trump's victory in the presidential elections initially sparked optimism among bank executives, but markets have recently been less confident in his approach, rattled by tariffs and growing concerns about an economic slowdown. Last week, Trump suggested that a period of market correction might be inevitable, particularly once the tariffs take effect. The banking sector, dependent on a stable macroeconomic environment, has found itself in a state of uncertainty, leading to volatility in equity markets, reflecting concerns about trade wars and their impact on the global economy. Major financial institutions have begun to revise their forecasts, considering the possibility of declining profitability.

Trump's comments on an inevitable market correction have added to the nervousness. Fearing losses, investors have started reducing their positions in riskier assets, contributing to a decline in stock prices of banks and other financial companies.

The meeting is expected to be attended by Chuck Robbins, CEO of Cisco Systems Inc., Jamie Dimon, CEO of JPMorgan Chase & Co., Jane Fraser, CEO of Citigroup Inc., and several other prominent Wall Street giants.

Will this meeting help stop the panic selling in the stock market? It is possible. But the question remains: how long will this support last before a new wave of index declines?

Technically, the S&P 500 continues to fall. The key task for buyers today will be to overcome the nearest resistance level of $5,645. This will help sustain growth and open up the possibility of a rally to the next level of $5,670. Equally important for bulls will be to take control of the $5,692 mark, which would strengthen their position. If the market moves lower on reduced risk appetite, buyers will need to make their presence known around $5,617. A break below this level will push the index back to $5,594 and open the path to $5,567.

Jakub Novak,
Analytical expert of InstaForex
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