Trump Shrugs Off Market Dip and Predicts US Stocks Will Double

Trump Shrugs Off Market Dip and Predicts US Stocks Will Double

President strikes bullish tone at Davos as investors react to comments on rates and nuclear energy

US President Donald Trump has dismissed the recent pullback in US equities as “peanuts”, telling business leaders in Davos that stock markets will “double” over time despite short-term volatility. His remarks helped steady investor sentiment and triggered gains in both the broader market and nuclear-related stocks.

Trump Downplays Recent Market Weakness

Speaking at the World Economic Forum in Davos, Trump played down the recent decline in US share prices, arguing that it was insignificant when viewed against the scale of gains made over recent years.

He said positive economic data used to push markets higher “as it should”, expressing frustration that stocks now sometimes fall even when economic news is good. According to Trump, this shift in behaviour does not reflect underlying economic strength.

Despite recent volatility, he insisted that his long-term outlook for US markets remains firmly positive.

US Stocks Rebound After Davos Remarks

Markets appeared to take some comfort from the president’s comments. The S&P 500 rose around 0.4% at the open, reversing earlier pre-market losses.

Traders said the rebound reflected a more conciliatory tone from Trump, following a period of heightened market anxiety linked to trade tensions, interest rate uncertainty and geopolitical risks.

The recovery highlights how sensitive markets remain to political signals, particularly when delivered on a global stage such as Davos.

Trump Predicts Stocks Will “Double”

One of the most striking elements of Trump’s speech was his prediction that US stocks will “double” over time. While he did not specify a timeframe, the comment reinforced his belief that economic growth, corporate profits and investment will continue to drive markets higher in the long run.

The remarks are consistent with Trump’s long-standing focus on stock market performance as a key measure of economic success.

Federal Reserve Leadership Back in Focus

Trump also reignited speculation about the future of US monetary policy by saying he would announce a new chair of the Federal Reserve in the “not too distant future”.

He sharply criticised current Fed Chair Jerome Powell, describing him as “terrible”. The comments briefly refocused market attention on interest rates and the independence of the central bank.

Any change in Fed leadership could have significant implications for monetary policy, borrowing costs and market valuations.

Nuclear Stocks Rally on Energy Comments

One of the clearest market reactions came in the nuclear energy sector. Trump said the US was “very much into the world of nuclear energy”, framing it as a central pillar of his economic and energy strategy.

Shares in companies involved in developing small nuclear reactors rose sharply in pre-market trading:

• NuScale Power gained around 6%
• Nano Nuclear Energy rose more than 5%
• Oklo, backed by Sam Altman, climbed close to 8%

The move reflects growing investor interest in nuclear power as governments seek reliable, low-carbon energy sources.

Why Trump’s Comments Matter for Investors

Trump’s remarks underline the powerful influence political leadership can have on financial markets. His bullish stance on equities, criticism of the Federal Reserve and support for nuclear energy all have the potential to shape investor expectations.

While short-term market swings are likely to continue, his comments reinforced optimism in certain sectors and highlighted areas — such as energy and infrastructure — that could benefit from future policy direction.

Outlook: Optimism Meets Volatility

Despite ongoing uncertainty around interest rates, trade and geopolitics, Trump’s message at Davos was clear: he believes US markets remain on a long-term upward path.

For investors, the challenge will be balancing that optimism with the reality of continued volatility, as markets respond to both economic data and political developments in the months ahead.

Sources: (Investing.com, Reuters.com)