Is President Donald Trump on a Collision Course With History? More Than a Century of Data Paints a Clear Picture.
Historic correlations spell trouble for the U.S. economy and stock market during Trump's second term.
For more than two years, optimists have firmly held the reins on Wall Street. Since 2022 came to a close, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), widely followed S&P 500 (SNPINDEX: ^GSPC), and innovation-propelled Nasdaq Composite (NASDAQINDEX: ^IXIC) have respectively increased in value by 35%, 59%, and 91%, as of the closing bell on Feb. 13.
Investors have relied on a laundry list of catalysts to send the broader market higher, such as the artificial intelligence (AI) revolution and excitement surrounding stock splits. But the wind in Wall Street's sails in recent months has to do with President Donald Trump's return to the White House.
During Trump's first term in office, the Dow Jones, S&P 500, and Nasdaq Composite catapulted higher by 57%, 70%, and 142%, respectively. It's fair to say that Trump's focus on lowering the peak marginal corporate income tax rate and promoting deregulation are being viewed favorably by Wall Street.
