“I hate to predict things like that," he said in a Fox News interview on Sunday. "There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. It takes a little time, but I think it should be great for us."
Shares in electric vehicle maker Tesla (TSLA) dropped more than 15% on Monday, with the stock a further 3% in the red in pre-market trading on Tuesday morning. The stock has been falling recently amid a backlash against CEO Elon Musk, who is a key adviser to Trump and heads up the so-called Department of Government Efficiency (DOGE).
Musk's plans to oversee sweeping cuts in government agencies has led to protests at Tesla facilities across the US. Trump said in a social media post on Tuesday that he would buy a new Tesla to show his support for Musk.
The Magnificent 7 – comprising Tesla, Nvidia, Apple, Meta, Microsoft, Amazon and Alphabet – saw its combined share price drubbed as it took centre stage in the US market sell-off on Monday.
Chipmaker Nvidia (NVDA) fell 5%, dragging its market capitalisation down to $2.6tn (£2tn), with the stock trading at its lowest point since September.
Nvidia shares have been under pressure since late January, when the release of a lower cost artificial intelligence (AI) model by Chinese startup DeepSeek prompted a sharp fall in the stock. The emergence of DeepSeek's model rattled investors in US Big Tech, as it raised concerns about the level of spending on AI by these major companies.
Nvidia shares took a further his after the release of the company's fourth quarter results in late February. While the company beat expectations for revenue and earnings, its guidance for gross profit margins added to investor nervousness about future growth.
Jim Reid, market strategist at Deutsche Bank, said that the Mag 7 have "moved into bear market territory, having now shed more than 20% since its peak back in December.
"Even before the tariff news escalated this month, the Mag 7 had been underperforming. In February when the S&P 500 was down 1.42% the Mag 7 declined 8.77%. I think the DeepSeek news was much bigger than people gave credit for after the initial attention calmed down."
The pan-European STOXX 600 (^STOXX) fell 1.4% on Monday and was trading just below the flatline on Tuesday morning.
Shares in Novo Nordisk (NOVO-B.CO), one of Europe's largest companies, stumbled on Monday and were down 2.7% on Tuesday morning, following disappointing results from a weight loss drug trial.
The trial of CagriSema showed that patients using the drug dropped only around 15% of their weight, compared to the 25% that was expected by the company and investors.
Expectations have been high around this latest obesity drug candidate, as competition heats up in the space, with investors hoping that Novo Nordisk (NOVO-B.CO) can deliver a strong follow-up to its blockbuster Wegovy medicine.
Shares in Volkswagen (VOW3.DE) rose 2% on Tuesday morning, as investors appeared upbeat about the latest results from Europe's top carmaker.
Volkswagen (VOW3.DE) posted revenue of €324.7bn (£273.5bn) for the year, up slightly from €322.3bn in the previous year. However, operating profits were down 15% to €19.1bn, which Volkswagen (VOW3.DE) said was driven by a "significant increase" in fixed costs.
For the year ahead, Volkswagen (VOW3.DE) said it expected sales revenue to grow by 5% and to deliver an operating margin of 5.5% to 6.5%.
Oliver Blume, CEO of Volkswagen Group, said that the company had set out on a "decisive strategic course" in 2024. "As our transformation gains in traction, the new strength of Volkswagen Group comes to life," he said.
In the UK, shares in Persimmon (PSN.L) were up 2% on Tuesday morning, after the housebuilder posted strong full-year results.
Persimmon's full-year revenue rose 15% to £3.2bn ($4.1bn), with new home completions up 7% to 10,664 new homes. Underlying pre-tax profits grew by 10% to £395m, which was ahead of market expectations.
In 2025, Persimmon said it expected completions to increase to between 11,000 and 11,500 new homes.
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown (HL.L), said: “Persimmon built solid foundations for growth in 2025, with strong demand helping profits beat market expectations."
He said that it was the "guidance for 2025 and beyond that captured investors’ attention" on Tuesday.
"It’s hoped that the group’s in-house materials businesses will keep a lid on build-cost inflation, which should be limited to low single digits," he said. "Alongside a rise in its selling prices, this adds weight to expectations that profits will grow in line with market forecasts, pointing to pre-tax profit growth of around 13.5% to £432mn."
