From a numbers perspective, Wall Street is booming with President Donald Trump in the White House. During his first, non-consecutive term (Jan. 20, 2017 – Jan. 20, 2021), the ageless Dow Jones Industrial Average (^DJI 0.95%), broad-based S&P 500 (^GSPC 1.33%), and growth stock-dependent Nasdaq Composite (^IXIC 1.59%) rallied 57%, 70%, and 142%, respectively. Since Trump's second term started on Ja...
From a numbers perspective, Wall Street is booming with President Donald Trump in the White House. During his first, non-consecutive term (Jan. 20, 2017 – Jan. 20, 2021), the ageless Dow Jones Industrial Average (^DJI 0.95%), broad-based S&P 500 (^GSPC 1.33%), and growth stock-dependent Nasdaq Composite (^IXIC 1.59%) rallied 57%, 70%, and 142%, respectively. Since Trump's second term started on Jan. 20, 2025, it's been more of the same. Through the closing bell on March 2, the Dow, S&P 500, and Nasdaq Composite have, respectively, gained 12%, 15%, and 16%. While most presidents see the stock market advance during their term in the Oval Office, the annualized return for Wall Street's major stock indexes under Trump has been among the best of any president, looking back more than a century. But at the same time, when things seem too good to be true for the stock market, they often are. Although plenty of catalysts may still give the Trump bull market legs, more than 150 years of historical precedent point to the high likelihood of this bull market ending sooner, rather than later. The stock market is hitting all-time highs under Donald Trump Before digging into the time-tested headwind that can upend the Trump bull market rally, we first need to lay the foundation for how the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite reached their all-time highs. To begin with, not every upside catalyst on Wall Street is related to President Trump. For instance, the rise of artificial intelligence (AI) and the advent of quantum computing are, arguably, the hottest stock market trends. Analysts at PwC believe AI can create $15.7 trillion in global economic value by 2030, while Boston Consulting Group is looking for quantum computers to add $450 billion to $850 billion to worldwide economic value come 2040. These are high-ceiling addressable markets that tend to get investors excited. The bull market rally is also being fueled by the Federal Reserve's ongoing rate-easi...