Is President Trump About to Oversee Another Sharp Stock Market Sell-Off? Here’s What Could Happen Next.
https://www.aol.com/articles/president-trump-oversee-another-sharp-175500121.html
Publish Date: 2026-03-01 15:23:00
Source Domain: www.aol.com
Key Points
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Investors were dumping artificial intelligence stocks last week on concerns that the industry’s biggest start-up won’t be able to meet its financial obligations.
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Investors are also contending with a deteriorating job market, which could start to impact economic growth and corporate earnings.
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The S&P 500 is near a record high, but these headwinds could spark a steep correction.
The benchmark S&P 500 (SNPINDEX: ^GSPC) stock market index is down fractionally from its all-time high as I write this, but a wave of uncertainty is washing over the market right now, which has triggered some volatility over the last couple of weeks.
Investors are concerned that the world’s leading artificial intelligence (AI) start-up — OpenAI — won’t be able to fulfill its enormous financial commitments, and they are also weighing the impacts of a deteriorating job market, potentially resulting from some of the Trump administration’s economic policies.
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President Donald Trump has been in office during three major stock market drawdowns. During his first term, the S&P 500 suffered a peak-to-trough decline of almost 20% in 2018, followed by a much sharper 35% sell-off in 2020 at the height of the COVID-19 pandemic. Then, last April, the president’s “Liberation Day” tariff announcement contributed to a brief 21% sell-off. Fortunately, the market recovered to set new all-time highs on each occasion, but are we headed for another steep correction or even a bear market? If so, here’s what investors can expect.
A Wall Street street sign with American flags in the background.
Image source: Getty Images.
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