Trump Claims Credit for S&P 500's 19.6% Gain in Past Year
President Trump has claimed credit for the stock market's impressive gains, with the S&P 500 surging 19.6% over the past year. Despite initial concerns over trade tariffs, the market has recovered and is on a six-month winning streak.
The S&P 500's rise can be attributed to robust corporate earnings and investor enthusiasm for artificial intelligence. However, the index has become heavily concentrated in big tech companies, with Nvidia alone accounting for 8% of its market value.
Analysts like Jed Ellerbroek of Argent Capital Management acknowledge the positive market environment under Trump, highlighting the 'good' aspects outweighing the 'bad'. Despite Trump's unconventional trade negotiation style, investors have grown accustomed to the daily surprises, particularly in large-cap tech stocks. The 10-year US Treasury yield has also decreased from 4.4% to 4.1% since November 2024, reflecting investors' confidence in the market.
Since Trump's election, the S&P 500 has experienced the eighth-best first-year performance for a president since World War II. Investors have been bullish about potential deregulation and tax cuts under his administration, contributing to the market's record highs. Wall Street's fear gauge, the CBOE Volatility Index, has also signaled relative calm in markets for the past six months.
President Trump's policies and trade negotiations have had a significant impact on the stock market, with the S&P 500 reaching record highs following his reelection. Despite initial concerns, investors have grown comfortable with his negotiating style, and the market has benefited from strong corporate earnings and AI investments.
