Trump's Tariffs Trigger Rare Sell-off As 'American Exceptionalism' Falters

Wall Street’s “American exceptionalism” narrative is faltering as both the U.S. dollar and equities tumble in an unusual sell-off, according to Financial Times. The S&P 500 has dropped nearly 4%, and the dollar has fallen 4% against a basket of peers this year, a rare combination according to Goldman Sachs. The firm called the dual declines one of the fastest equity corrections since the 1970s. The sell-off coincides with Trump’s aggressive tariffs on Mexico, Canada, and China, which have fueled concerns over growth and rattled global markets. JPMorgan strategists said fading confidence in U.S. exceptionalism has led them to turn bearish on the dollar for the first time in four years.