The Stock Market Flashes a Warning as President Trump Announces New Tariffs. History Says the S&P 500 Will Do This Next.
The Motley Fool
by newsfeedback@fool.com (Trevor Jennewine)February 24, 2026
AI-Generated Deep Dive Summary
The stock market has issued a warning as President Trump's announcement of new tariffs creates uncertainty, with the S&P 500 potentially facing sharp declines. Despite global markets outside the U.S. experiencing growth, U.S. stocks have stagnated this year, marking one of its weakest performances in decades compared to international peers. This underperformance is attributed to high valuations and investor concerns over Trump's trade policies.
Kevin Gordon, a strategist at Charles Schwab, highlights that the S&P 500's lackluster performance is unusual, with such underperformance not seen in 30 years. Investors are increasingly shifting away from U.S. stocks due to worries about tariffs and their impact on the economy. Trump's recent decision to double down on his tariff strategy has only heightened these concerns, potentially creating significant economic headwinds.
The tariffs have raised fears of a trade war, which could harm corporate earnings and lead to market corrections. The S&P 500's high valuations make it particularly vulnerable to such shocks. Investors are closely monitoring these developments, as any misstep in the tariff strategy could trigger a sharp sell-off in U.S. equities.
For readers interested in finance, this situation underscores the importance of understanding how geopolitical events and trade policies can influence market dynamics. The interplay between high valuations and external economic pressures makes the S&P 500's next move critical for investors assessing their portfolios. As tensions rise, keeping a watchful eye on global markets and U.S. economic indicators will be essential for navigating this uncertain landscape.
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Originally published on The Motley Fool on 2/24/2026