Is the Trump Bull Market About to Crash? A Historically Accurate Measure of Risk Offers a Chilling Answer.
The stock market has a $1.5 trillion problem that can’t be swept under the rug.
Overview
Although Wall Street has endured some of the wildest swings in its storied history under President Donald Trump, the iconic Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and tech-driven Nasdaq Composite (NASDAQINDEX:^IXIC) have thrived with Trump in the White House.
During Trump's first, non-consecutive term (Jan. 20, 2017-Jan. 20, 2021), the Dow, S&P 500, and Nasdaq Composite surged 57%, 70%, and 142%, respectively. Since taking office for his second term on Jan. 20, 2025, Wall Street's trio is up 19%, 28%, and 35%, respectively.
Details
The Trump bull market has been fueled by the artificial intelligence (AI) infrastructure build-out, better-than-expected corporate earnings, and record S&P 500 share buybacks, among other catalysts. Record buybacks are a function of Trump's flagship Tax Cuts and Jobs Act (signed in December 2017), which reduced the peak marginal corporate income tax rate from 35% to 21%.
Source
Originally published at www.fool.com.