Dollar General Stock Soars 36% in Trump's First 100 Days

During the first 100 days of Donald Trump's second term, the stock of Dollar General, a prominent discount retailer in the United States, rose by 36%, making it the third-best performing stock in the S&P 500 index. This performance surpassed the 6% increase seen in the consumer staples sector during the same period and outperformed competitors such as Dollar Tree and Walmart.

As Trump's second term began, defensive stocks became favored as a safe haven for investors amid economic uncertainty. Analysts noted that the market shifted towards more conservative strategies due to inflation and tariff policies. In the face of inflationary pressures and economic uncertainty stemming from Trump's tariff policies, investors moved away from growth stocks and towards defensive sectors, favoring discount retailers for their recession-resistant qualities.

Arun Sundaram, Senior Vice President at CFRA Research, commented, "Discount retailers typically perform better during economic downturns, especially when recession expectations rise." In early April, Trump's announcement of high "reciprocal tariffs" on numerous trading partners sparked market panic. However, most tariff rates were subsequently reduced to a uniform 10% for a 90-day period.

Dollar General's stock demonstrated resilience during the tariff turmoil, rising 5% in April, while the S&P 500 index fell by more than 2% during the same period. This performance highlights the company's ability to navigate through economic uncertainties and maintain investor confidence.