Will President Trump Crash the Stock Market? History Says This Could Come Next.
Trump's tariff obsession just got some new legislative teeth.
Overview
Donald Trump's return to the White House sparked a new period of uncertainty as investors must now navigate the impacts of his unorthodox and often contradictory policy initiatives. The S&P 500 so far has largely shrugged off these challenges with a gain of 17.9% in 2025 and just over 11% so far this year as optimism over the generative artificial intelligence (AI) boom continues to dominate the narrative.
How much longer can stocks ignore the elephant in the room? Let's dig deeper into the challenges facing the current market -- referencing historical parallels to try to figure out what might come next for investors.
Details
While the Trump administration continues to claim that it wants to lower prices, its policy decisions are having the opposite effect. The biggest challenge comes from the war in Iran, which has led to severe disruptions in the Strait of Hormuz, a chokepoint responsible for the transit of about 25% of global maritime oil shipment volume. The situation is similar to the oil shocks of 1973 and 1979, when disruptions in Middle Eastern supply led to a mix of slow U.S. growth and rising inflation, often referred to as stagflation.
Source
Originally published at www.fool.com.