TechFlow News — On February 25, Steve Cohen, billionaire hedge fund manager and founder of Point72, said during a speech in Miami that U.S. stocks could face a significant correction due to the impact of Trump administration policies. Cohen expects U.S. economic growth to slow from 2.5% to 1.5% in the second half of 2025, marking the first time in a while that he has felt "very negative."
Cohen pointed out that the Trump administration's tariff policies are essentially a form of taxation that could trigger international trade retaliation. Meanwhile, immigration restrictions will affect labor force growth, and the Department of Government Efficiency (DOGE)'s anti-corruption initiative is effectively a fiscal tightening measure. These combined factors will deliver a negative shock to the economy. With the S&P 500 having risen over 50% since early 2023 and Nvidia up 800%, market valuations are now at historic highs. Most investors, including hedge funds and retail traders, are holding positions near their limits, significantly increasing downside risks.
Point72 is known as "Wall Street’s craziest money-making machine." Cohen has been named by U.S. media as the most influential trader in Wall Street history and served as the inspiration for Bobby Axelrod, the ruthless financier in the popular TV series "Billions." According to analysis by Goldman Sachs' trading desk, a 10% drop in equities within one month could trigger around $200 billion in systemic selling, with one-third originating from the U.S. market.
