Will the Stock Market Crash Under President Trump in 2026? History Says Investors Have Reason to Worry.

1 week ago 6

Trevor Jennewine, The Motley Fool

Mon, March 16, 2026 astatine 3:32 AM CDT 5 min read

The S&P 500 (SNPINDEX: ^GSPC) is wide regarded arsenic the champion benchmark for the U.S. banal marketplace due to the fact that it covers astir 80% of home equities by marketplace value. The scale is presently 5% beneath its grounds precocious aft falling successful 3 consecutive weeks. Several factors person contributed to the drawdown:

History says the S&P 500 could diminution adjacent further successful the remaining months of the twelvemonth arsenic those situations proceed to develop. Here's what investors should know.

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President Donald J. Trump delivers his State of the Union address.

President Donald J. Trump delivers his State of the Union address. Image source: Official White House Photo.

Trump has reshaped the planetary commercialized scenery by imposing sweeping tariffs connected sector-specific goods and imports from astir countries. "We are rapidly gathering the top system successful the past of the world," helium wrote successful January. But that connection runs contrary to the facts.

U.S. GDP accrued 2.1% past year. Excluding the pandemic successful 2020, that ranks arsenic the slowest economical maturation since 2016. Furthermore, U.S. employers added 181,000 jobs past year. Excluding the pandemic, that ranks arsenic the slowest labour marketplace maturation since 2009. Neither fig paints the representation of a booming economy.

The U.S.-Iran warfare has efficaciously closed the Strait of Hormuz, a waterway successful the Persian Gulf that carries 20% of planetary lipid and state supply. The fig of vessel transits done the strait has fallen from astir 150 a time to azygous digits since the warfare began, according to The Wall Street Journal.

Since precocious February, Brent crude lipid prices (an planetary benchmark) person soared much than 40% to $103 per barrel, a level past seen successful August 2022. U.S. consumers are already paying much astatine the pump. The mean terms for a gallon of regular gasoline precocious topped $3.50 for the archetypal clip since the summertime of 2024.

In the past, the S&P 500 has suffered a median peak-to-trough diminution of 19% successful midterm predetermination years. Put differently, past says determination is simply a 50-50 accidental the scale tumbles astatine slightest 19% astatine immoderate constituent successful 2026. That signifier tin beryllium attributed to argumentation uncertainty.

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