Is a Stock Market Crash Looming Under President Donald Trump? Nearly 156 Years of History Offers Up an Unpleasant Truth for Wall Street.
When things seem too good to be true for the stock market, history shows they often are.
For over a century, the stock market has served as a vehicle for wealth accumulation. While major stock indexes such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite typically flourish under most administrations, these indices experienced particularly robust growth under President Donald Trump. Between January 20, 2017, and January 20, 2021, the Dow, S&P 500, and Nasdaq Composite surged by 57%, 70%, and 142% respectively.
In his current term, the Dow, S&P 500, and Nasdaq Composite have also demonstrated strong performance, with the Dow increasing by 23%, the S&P 500 by 29%, and the Nasdaq Composite by 35% as of September 4, 2026.
Several factors have contributed to the bullish outlook on Wall Street. These include the development of artificial intelligence infrastructure, better-than-expected corporate earnings, and significant share buyback activity. The latter has been facilitated by President Trump's Tax Cuts and Jobs Act, signed into law in December 2017, which permanently reduced the peak marginal corporate income tax rate from 35% to 21%.
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