Is a Stock Market Crash Looming Under President Donald Trump? Nearly 156 Years of History Offers Up an Unpleasant Truth for Wall Street.
When things seem too good to be true for the stock market, history shows they often are.
Overview
For more than a century, the stock market has been a wealth-building machine. While Wall Street's major stock indexes, the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC), commonly advance under most presidents, the annualized returns of these indexes have been especially pronounced under President Donald Trump.
During Trump's first non-consecutive term (Jan. 20, 2017 – Jan. 20, 2021), the Dow, S&P 500, and Nasdaq Composite rallied 57%, 70%, and 142%, respectively. His second term has, thus far, been a repeat performance, with the Dow, S&P 500, and Nasdaq climbing 23%, 29%, and 35% (through Sept. 4, 2026).
Details
Several factors have fanned the flames of optimism on Wall Street, including the artificial intelligence infrastructure build-out, better-than-expected corporate earnings, and record share buyback activity. The latter comes courtesy of President Trump's flagship Tax Cuts and Jobs Act (signed into law in December 2017), which permanently lowered the peak marginal corporate income tax rate from 35% to 21%.
Source
Originally published at www.fool.com.