Donald Trump’s first term as president was a rollercoaster for investors. During his presidency, the S&P 500 Standard & Poor’s 500 Index climbed nearly 70% overall. But the ride wasn’t smooth. Investors faced two severe crashes in just eight years. The first hit in early 2020 when COVID-19 panic wiped out 34% of the market in just 33 days. The second arrived in 2022 after the Federal Reserve Federal Reserve jacked up interest rates to fight inflation, erasing 25% of the market’s value. The contrast between record highs and brutal downturns shaped Trump’s reputation as the “ultimate stock market president”—for better or worse.

The record highs that defined his term

By the time Trump left office in January 2021, the S&P 500 had hit 44 record closes in 2020 alone. Tax cuts, deregulation, and optimism about reopening the economy drove stocks upward. The Dow Jones Industrial Average Dow Jones Industrial Average also climbed nearly 60% during his presidency. Investors who bet on tech and consumer stocks did especially well. Apple became the first U.S. company to cross $2 trillion in market value. Tesla’s stock soared over 1,000% in 2020 alone. For many, Trump’s presidency felt like a golden era for stocks.

The market’s gains weren’t just about Trump’s policies. The Federal Reserve kept interest rates near zero, making stocks the only game in town for investors chasing returns. Low borrowing costs fueled a buying spree in everything from meme stocks to cryptocurrencies. Even retail investors piled in, with apps like Robinhood Robinhood Markets making trading as easy as ordering takeout. But critics warned the rally was built on shaky ground—one shock away from collapsing.

The first crash: COVID-19 and the fastest bear market ever

On February 19, 2020, the S&P 500 closed at an all-time high of 3,386. By March 23, it had fallen to 2,237—a drop of 34%. That bear market lasted just 33 days, the fastest in history. The cause? A global pandemic that shut down economies overnight. Cities locked down. Factories closed. Airlines grounded planes. The fear was so intense that even gold prices spiked as investors scrambled for safety. The Trump administration responded with a $2.2 trillion stimulus package, the CARES Act, to cushion the blow. But the damage was done. The crash exposed how fragile the economic boom had been.

For millions of Americans, the crash wasn’t just about numbers on a screen. It was about lost jobs, empty shelves, and uncertainty about the future. The unemployment rate skyrocketed to 14.8% in April 2020. Small businesses collapsed. The Federal Reserve slashed interest rates to near zero again and launched an unprecedented bond-buying program to keep credit flowing. The message was clear: the Fed would do whatever it took to prevent a depression.

The second crash: The Fed’s inflation fight wipes out gains

By early 2022, the S&P 500 had clawed back to new highs. But the recovery was short-lived. Inflation hit a 40-year high of 9.1% in June 2022. The Federal Reserve responded by raising interest rates aggressively, the fastest pace since the 1980s. The goal was to cool the economy and bring prices down. The side effect? Stocks crashed again. The S&P 500 fell 25% from its peak in January 2022 to October 2022. Tech stocks, which had led the rally, were hit hardest. Meta Meta Platforms lost half its value. Amazon and Netflix also took big hits. Investors who thought the worst was over were proven wrong.

This time, the crash wasn’t about a health crisis. It was about the Fed’s attempt to fix one. Higher interest rates made borrowing more expensive for businesses and consumers. Housing markets slowed. Wages stagnated. The economy teetered on the edge of a recession. Even the U.S. dollar strengthened, making it harder for multinational companies to compete. The market’s decline was a brutal reminder that the Fed’s tools to fight inflation often come with a cost.

What happens next? The market’s future under Trump’s shadow

Now, as Trump eyes a potential second term in 2024, investors are bracing for more volatility. His economic policies—lower taxes, deregulation, and trade protectionism—could reignite market rallies. But the Federal Reserve’s fight against inflation isn’t over. Interest rates remain high. Geopolitical tensions, from China to Ukraine, add another layer of uncertainty. The market’s future will depend on whether the Fed can tame inflation without crushing growth—and whether Trump’s policies can deliver the growth investors crave.

For everyday investors, the lesson is clear: Trump’s presidency showed that the market can go up fast—and down even faster. Diversification, patience, and a long-term strategy matter more than ever. The wild ride isn’t over yet. The next few years could bring another surge—or another crash.

What You Need to Know

  • Source: CNBC
  • Published: May 16, 2026 at 17:00 UTC
  • Category: Business
  • Topics: #cnbc · #finance · #economy · #politics · #government · #trump

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Curated by GlobalBR News · May 16, 2026

🇧🇷 Resumo em Português

O mercado financeiro global nunca esteve tão ligado à política como nos últimos anos, e o Brasil sente os reflexos dessa relação na prática. Desde que Donald Trump assumiu a presidência dos Estados Unidos, em 2017, o mercado de ações não apenas refletiu, mas muitas vezes antecipou os altos e baixos de suas políticas econômicas, gerando ondas de otimismo e incerteza que chegaram até as bolsas brasileiras. Com um estilo imprevisível e declarações que moviam o humor dos investidores como uma montanha-russa, Trump transformou Wall Street em um termômetro não só da economia americana, mas também de como o mundo reage à volatilidade da geopolítica.

No Brasil, a influência de Trump foi especialmente sentida em setores como agronegócio, mineração e energia, setores fortemente conectados ao mercado internacional e às relações comerciais com os EUA. A imposição de tarifas sobre aço e alumínio, por exemplo, afetou diretamente exportadores brasileiros, enquanto a flexibilização de regulamentações ambientais nos EUA impulsionou empresas de mineração aqui, mostrando como as decisões de Trump tinham impacto direto na economia real brasileira. Além disso, a política monetária americana, com juros em patamares historicamente baixos durante grande parte do mandato, levou muitos investidores brasileiros a buscar oportunidades no exterior, pressionando o câmbio e o mercado de capitais local.

Agora, com Trump de volta à Casa Branca, o desafio é entender se o “efeito Trump” será de estímulo ou de instabilidade, enquanto o Brasil precisa se preparar para mais um ciclo de incertezas — e oportunidades — no tabuleiro global.

🇪🇸 Resumen en Español

La volatilidad se convirtió en la marca distintiva de Wall Street durante la era Trump, con el mercado bursátil experimentando altibajos sin precedentes bajo su mandato. Desde 2017 hasta 2020, las acciones reflejaron las políticas económicas del expresidente, que combinaron recortes fiscales, tensiones comerciales y una respuesta sin precedentes a la pandemia, dejando una huella imborrable en los bolsillos de los inversores hispanohablantes.

El mercado durante el gobierno de Trump osciló entre euforias efímeras y caídas abruptas, como la registrada en marzo de 2020, cuando el S&P 500 perdió un tercio de su valor en un mes por la crisis del COVID-19. Estas fluctuaciones no solo afectaron a grandes fondos de inversión, sino también a pequeños ahorradores y familias que vieron cómo sus planes de jubilación o inversiones personales se resquebrajaban. Para los hispanohablantes, muchos de ellos con ahorros en fondos de pensiones o cuentas 401(k), la inestabilidad generó incertidumbre sobre la seguridad de sus futuros financieros, mientras que los más audaces aprovecharon los bajones para comprar acciones a precios históricamente bajos.