There's a New Threat to the Stock Market and President Donald Trump's Economy
The Federal Reserve may have thrown a monkey wrench of epic proportions into the proverbial engines that power Wall Street and the U.S. economy.
Overview
From a statistical standpoint, Wall Street has enjoyed having President Donald Trump in the White House. The average annualized returns for the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) have been considerably higher under Trump than under most other presidents since the late 1890s.
Outsize stock market gains during Trump's non-consecutive second term have primarily been powered by the artificial intelligence (AI) infrastructure build-out.
Details
Unfortunately, a new threat has entered the picture, which has the ability to upend the AI-driven bull market and President Trump's economy. I'm talking about the Federal Reserve's rate-hiking cycle.
Source
Originally published at www.fool.com.