Steven Cohen, the founder of hedge fund Point72 Asset Management, warned on Tuesday that the US stock market could soon hit a peak, due to inflation pressures and uncertainty surrounding Donald Trump’s economic policies on tariffs and immigration, according to a report by Reuters.
Speaking at the iConnection investment conference in Miami, Cohen said Trump’s proposals — including universal tariffs on foreign goods and a sweeping border crackdown — could slow economic growth in 2025 rather than boost it, making it harder for the Federal Reserve to control inflation.
“I don’t think that’s a great backdrop,” Cohen stated. “I would expect the markets to top over the next couple of months — maybe they already have.”
Despite a 23% surge in the S&P 500 last year, Cohen sees headwinds ahead, particularly from Trump’s trade policies, although he downplayed concerns over Monday’s tech rout, which saw Nvidia shares plunge 17% after Chinese AI startup DeepSeek unveiled a low-cost, high-performing AI model. While acknowledging the disruption, Cohen remained optimistic about AI’s long-term impact.
“Great companies are going to be expensive,” he said, implying that Nvidia’s valuation remains justified. He added that AI innovation will come in waves, with new companies leveraging AI tools to drive the next phase of growth.
“We’re in the early stages of something transformational,” Cohen said.
Point72 recently launched an AI-focused fund, which has already gained 14% in its first three months and is expected to raise nearly $1.5bn, according to Reuters.
