Will the Stock Market Crash in Year 2 of Donald Trump's Second Term? Several Historically Correlated Events Offer a Clear Answer.
The Motley Fool
by newsfeedback@fool.com (Sean Williams)February 14, 2026
AI-Generated Deep Dive Summary
The stock market has shown remarkable resilience during Donald Trump's time in office, with major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite recording substantial gains. From January 20, 2017, to January 20, 2021, these indices saw increases of 57%, 70%, and 142% respectively. Even in the early stages of his second term, from January 20, 2025, to February 11, 2025, the market continued to rise, with gains of 15%, 16%, and 18%. This sustained growth has led to questions about whether a crash is imminent in Year 2 of his second term.
Historically, markets have shown patterns where strong performance can signal underlying strengths or vulnerabilities. Factors such as economic policies under Trump, including tax cuts and deregulation, have contributed to market growth. Additionally, geopolitical developments, trade negotiations, and Federal Reserve policies have played roles in maintaining bullish sentiment. However, past cycles indicate that prolonged bull markets often precede corrections or crashes, with investors sometimes overextending due to complacency.
For readers interested in finance, understanding these dynamics is crucial for investment decisions. While the market's upward
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Originally published on The Motley Fool on 2/14/2026