Stock market grew in 2025 — but less than any first year of a new presidency in two decades

Market Performance - The S&P 500 rose 13.3% from President Trump's inauguration day last year through January 20 of this year, marking the weakest start to a presidency in 20 years [1][4] - In contrast, during the first year of Trump's first term, the S&P 500 increased by 24.1% [2] - Last year, the S&P 500 achieved 39 record highs, compared to 62 all-time highs in 2017 when Trump first took office [4] Economic Factors - International stocks outperformed the US market for the first time in years, attributed to Trump's tariff announcements causing market volatility [4][13] - The stock market gains are seen as a positive aspect of the current economy, driven by AI optimism, interest rate cuts, strong corporate earnings, and a resilient economy [6] Tariff Impacts - New tariffs and geopolitical tensions have raised concerns among investors, with a noted volatility in the markets following Trump's tariff announcements [5][8] - The S&P 500 experienced a significant drop near bear-market levels after the announcement of "Liberation Day" tariffs, but rebounded sharply when tariff threats were paused [9][10] Investor Sentiment - Analysts have indicated that market volatility is largely due to the Trump administration's inconsistent foreign trade policies [8] - Investors have shifted towards safe-haven assets like gold and silver amid market fluctuations, with gold prices surpassing $5,000 for the first time [11]