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For better or worse, investors are living through Trump’s stock market. Here's why

CNBC · May 16, 2026, 1:46 PM · Also reported by 4 other sources

Key takeaways

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  • President Donald Trump has been considered the ultimate stock market president, overseeing an expansion to numerous record highs while serving as a catalyst for major declines.
  • Within the first two months of Trump's second term, the S&P 500 experienced one of the fastest falls to correction territory since World War II, spurred primarily by uncertainty surrounding his tariff policies.

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President Donald Trump has been considered the ultimate stock market president, overseeing an expansion to numerous record highs while serving as a catalyst for major declines.

Within the first two months of Trump's second term, the S&P 500 experienced one of the fastest falls to correction territory since World War II, spurred primarily by uncertainty surrounding his tariff policies. Not even a month later, the index almost closed in bear market territory on the heels of the president's "liberation day" tariff announcement. A correction is defined as a fall of at least 10% but less than 20% from its recent high, while a bear market is a drop of at least 20% or more on a closing basis.

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