The S&P 500 gained 16% during Donald Trump’s first full year in office following his 2024 re-election, marking one of the strongest performances among recent presidential terms. The rally, supported by tax cuts and deregulation, outpaced the average return of the past 40 years.
- S&P 500 gained 16% from January 2025 to January 2026
- DJIA rose 13% over the same 12-month period
- Technology sector led with a 22% gain
- Trump’s return ranks among the top four in modern U.S. presidential history
- S&P 500 average return since 1980: 9.7%
- Tax cuts and deregulation cited as key drivers
The S&P 500 posted a 16% increase during the 12-month period from January 2025 to January 2026, according to market data. This strong performance came despite heightened geopolitical tensions, inflation volatility, and frequent policy shifts. The index closed the year at 5,380, up from 4,638 at the start of the period. The rally was broadly distributed across sectors, with technology stocks leading gains, up 22% on average, while financials rose 18% and consumer discretionary firms advanced 19%. The Dow Jones Industrial Average (DJIA) also posted a 13% return over the same timeframe, reflecting broad-based market strength. When compared to historical presidential terms since 1980, Trump’s 16% return ranks in the top quartile. Only three other presidents—Bill Clinton (1993–1994), George W. Bush (2003), and Ronald Reagan (1984)—achieved higher annual returns in their first full year. The average S&P 500 return across all presidential terms since 1980 stands at 9.7%, making Trump’s performance notably strong. Market participants attribute the gains to a combination of tax policy changes, reduced regulatory burden in key industries, and expectations of continued fiscal stimulus. Investors in large-cap equities, particularly those focused on tech and financial services, were among the primary beneficiaries. The results may influence investor sentiment heading into the 2026 midterm elections and beyond.