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Market analysis Score 25 Neutral

Historical Patterns Suggest Trump Bull Market May Be Entering Final Phase

Apr 05, 2026 10:56 UTC
^GSPC, ^DJI, ^VIX
Long term

Historical data and midterm election trends indicate potential volatility for the stock market as the Trump bull market may be nearing its conclusion. Analysts highlight past performance and current political dynamics as key factors.

  • The S&P 500, Dow Jones, and Nasdaq saw significant gains during Trump's first term.
  • The second quarter of the second year of a presidential term has historically averaged a 2.8% decline in the S&P 500.
  • Midterm election years have seen an average 17.5% peak-to-trough decline in the S&P 500 since 1950.
  • Historical data shows stocks rebound nearly 32% on average from midterm lows within a year.
  • Current political dynamics, including a narrow Republican majority, contribute to market uncertainty.

The stock market has historically performed well during President Donald Trump's tenure, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite rising by 57%, 70%, and 142% respectively during his first term. However, recent market fluctuations and geopolitical uncertainties, such as the Iran war, have introduced new challenges. Carson Group's Chief Market Strategist, Ryan Detrick, notes that the second quarter of the second year of a presidential term has historically delivered an average decline of 2.8% in the S&P 500 since 1950. Midterm election years, in particular, have shown a tendency for larger peak-to-trough corrections, with an average decline of 17.5% in the S&P 500 since 1950. The current political landscape, with a narrow Republican majority in Congress, adds to the uncertainty. While a divided Congress might limit major legislative changes, it could also heighten investor anxiety. Historical patterns suggest that while midterm years often see significant pullbacks, stocks have historically rebounded within a year, rising nearly 32% on average from their lows.

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