Trump's unshackled presidency impact on economy

What happened: Donald Trump's economic approval ratings have plummeted, with independents' approval dropping by 79 points, according to Moneywise and Yahoo Finance. This is a significant shift from his 2024 campaign, where his economic stance was a key strength. The CNBC All-America Economic Survey also shows a decline in his overall and economic approval ratings, largely due to dissatisfaction with the war in Iran and high gasoline prices. Meanwhile, BlackRock CEO Larry Fink suggests Trump's policies could be a successful wealth-building tool for children when paired with existing investment vehicles.

Market impact: The decline in Trump's economic approval ratings could impact sectors sensitive to consumer confidence and spending, such as retail and consumer discretionary. The global energy shock driven by the U.S.-Iran conflict is driving up prices of fuel and groceries, affecting companies in the energy and food & beverage sectors. Trump's lack of focus on the economy may also spook investors, potentially impacting markets and sectors that have historically been positively correlated with his economic policies.

What to watch next: Investors should closely monitor the upcoming U.S. inflation data releases, scheduled for May 10 and June 14, to gauge the impact of higher energy and food prices on consumer spending and overall economic growth. Additionally, the 2026 U.S. presidential election will be a key catalyst, with Trump's economic policies and approval ratings likely to remain in focus leading up to the vote.