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An Inflation Double Whammy Awaits Wall Street, Making a Stock Market Crash Likelier Under President Donald Trump

If you think the worst is over for inflation, you're about to be sorely mistaken.

An Inflation Double Whammy Awaits Wall Street, Making a Stock Market Crash Likelier Under President Donald Trump

Published July 25, 2026 · Category: Finance

Overview

From a purely statistically standpoint, outsize stock market gains have gone hand-in-hand with Donald Trump's presidency. Despite historic volatility during the early stages of the COVID-19 pandemic and, more recently, the tariff tantrum in April 2025, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have generated double-digit annualized returns with Trump in the White House.

But history also makes it clear that bull markets aren't indefinite. While several catalysts threaten to weigh down the stock market, including otherworldly valuations and a parabolic move in outstanding margin debt, inflation is arguably the toughest to sweep under the rug.

President Trump's policies are fueling inflation -- but they aren't the only issue. Image source: Official White House Photo by Molly Riley.

Details

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.