Is President Donald Trump's "Liberation Day" Going to Cause a Stock Market Crash? History Provides a Clear Answer.
April 2nd has the potential to be a big day for Wall Street.
Over the last five weeks, Wall Street has reminded investors that stocks can move in both directions. Although the widely followed Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and innovation-inspired Nasdaq Composite (NASDAQINDEX: ^IXIC) are still firmly in respective bull markets, there was a brief period where the S&P 500 and Nasdaq Composite dipped into correction territory -- i.e., a decline of at least 10% from a recent high.
While there are a few concerns that have investors' attention at the moment, including a forecasted contraction in first-quarter gross domestic product, along with the historic priciness of stocks, perhaps the prevailing issue for the stock market is President Donald Trump's tariff policy.
Trump has touted what he calls "Liberation Day" as a key milestone for the U.S. in its fight to make foreign trade fair. The question is: Will the president's tariff proposals perpetuate a stock market crash?
