Trump’s Second Term Opens With Weakest Stock Rally in 20 Years as Crypto Markets Outperform
U.S. equities notched their tepidest presidential first-year gain since 2005, with the S&P 500 rising just 13.3% during Trump's inaugural year. The muted performance trailed both historical norms and his own first-term 24.1% surge, despite 39 record highs.
Investors pivoted to foreign equities and digital assets as AI HYPE and tariff volatility reshaped capital flows. Crypto markets eclipsed traditional benchmarks, continuing a trend that began during the 2024-2025 institutional adoption wave.
Market veterans note the rally faced stiff headwinds: two preceding years of 20%+ gains left valuations stretched, while abrupt tariff policy shifts triggered April's near-bear market scare. 'When the Fed tightens and the WHITE House flip-flops, money finds blockchain exits,' observed one hedge fund manager.
