At the World Economic Forum in Davos, US Commerce Secretary Howard Lutnick declared globalization a failed policy that left America behind. The sentiment, echoing the administration’s protectionist stance, set a confrontational tone for global business leaders.

President Donald Trump followed by predicting the US stock market would double from records he claimed credit for. This bullish forecast, juxtaposed with anti-globalization rhetoric, creates uncertainty for multinational corporations and investors navigating potential trade barriers.

The clash between protectionist policy and market optimism is the new risk for Wall Street. Investors now weigh the president’s confidence against the tangible threat of a European buyers’ strike, which could disrupt supply chains and dampen cross-border deal values.

What happens next will test whether policy rhetoric translates into action that impacts earnings. Markets have historically shrugged off political noise, but sustained trade tensions could finally challenge the bull run, forcing a repricing of global assets.