Economic concerns slow IPO market, consumer spending

What you probably already know: Markets don’t like volatility, and companies respond. The flurry of Trump administration orders have caused chaos in nearly every sector, and have made it nearly impossible for companies to predict the future. As such, many are shifting strategies. Many companies that have been waiting to go public, for example, have completely pulled out of the market, according to the New York Times.

Why? Turo, the car rental startup based in San Francisco, has sought to make its initial public offering since 2021, but delayed due to market volatility. Last week, the company simply pulled out entirely, stating that “now is not the right time.” Trump’s tariffs, combined with the diversity, equity and inclusion crackdown and immigration restrictions have had a ripple effect through the economy, forcing companies to rethink investments and wait it out to see how the economy will react. While some had hoped Trump’s anti-regulatory policies would set off more deal-making, the other decisions have created such chaos that the deal market had its quietest January in a decade.

What it means: Decisions not to go public, and to delay other investments mean money sits stagnant for longer and won’t return to the market. When companies don’t go public, their investors don’t get exits and can’t reinvest that money into other businesses, which slows dealmaking up and down the ecosystem. Meanwhile, consumers are doing their own kind of protest, as inflation and consumer prices remain high. “No buy 2025” is trending on social media as consumers make lists of items they will refuse to purchase in 2025, which includes everything from haircuts to water bottles to home decor.

What happens now? As the economy continues to make the wealthy wealthier and make it harder on the middle class, the Trump administration is already seeing cracks in its support. Trump’s approval rating has continued to fall, hitting a low of 44% on Feb. 19, and the share of Americans who disapprove of his presidency has jumped to 51%, up from 41% in January, and nearly all of that was tied to the economy.