Economic Performance - The S&P 500 and Nasdaq Composite have risen 15% and 19% respectively since President Trump assumed office for a second term [2] - U.S. growth has been trending up since Trump's inauguration, with annualized growth of real GDP reported at 4.3% in the third quarter [6][7] Investment Drivers - Rising investments in artificial intelligence (AI) and infrastructure are identified as the biggest catalysts fueling the current bull market [3] - Treasury Secretary Scott Bessent indicated that growth could "surprise on the upside," suggesting a nominal GDP rate of 7% to 8% [7] Economic Indicators - Gross Domestic Product (GDP) is critical for determining fiscal and monetary policy as well as corporate budgeting, reflecting a larger tax base due to increased sales and wages [5] - The distinction between nominal GDP and real GDP is emphasized, as nominal GDP may reflect growth due to higher prices rather than actual economic expansion [8]
President Donald Trump Oversees Strong GDP Growth, but the Stock Market is Flashing an Ominous Signal. Here's What History Suggests Comes Next in 2026
Yahoo Finance·2026-01-21 11:35