Trump’s 2025 S&P 500 Slump

Since Trump returned to office in January 2025, the S&P 500 has dropped about 14%. This is the worst start for the stock market under a president since the Great Depression. Trillions have been wiped out, and confidence on Wall Street is low. Tariffs, new trade war threats, and higher inflation make investors nervous. Tech stocks fell the hardest, dragging down retirement accounts and savings all across the US. Meanwhile, gold prices have surged, as people look for safer places to put their money.

The S&P 500 lost 8% from the inauguration to late April. Tech giants like Apple, Microsoft, Nvidia, and others were especially weak. These companies are a big part of the index, so their drops hurt almost everyone. The tech-heavy Nasdaq suffered as well.

Other companies, like those in energy, did better. The new tariffs and higher oil prices boosted profits for oil and gas producers. Energy gained about 9% as other sectors struggled.

Globally, some markets held up better. European and Asian stocks even gained, showing that this slump was mostly a US problem.

Uncertainty has spiked because of sudden policy changes. Tariff announcements and talk of trade wars made markets fall fast. At the same time, worries about inflation and mixed signals from the Federal Reserve left investors without clear direction.

Because investors got worried, they pulled money out of risky stocks and “junk” bonds. Instead, they bought gold (up 25%) and government bonds. Defensive sectors like utilities and healthcare benefited as well.

So, what could change the story? Markets could recover if the White House eases tariffs or softens trade policy. If companies report better earnings than feared, confidence could come back quickly. If inflation cools off, that would help too.

But big risks remain. Investors and big banks believe there is a high chance of recession. Until there’s more clarity from Washington or the economy, most are staying cautious.

Trump’s second term began with historic losses for the S&P 500 and huge drops in retirement accounts. Tech stocks led the slide, while energy and gold offered a few safe spots. Unless there is a big policy change or better economic news, market volatility is likely to stick around. Stay alert and stick to your long-term plan.