The S&P 500's return since Election Day has dropped to approximately 0.5%, marking a sharp reversal from the initial market surge after Donald Trump’s victory. If this trend holds through Inauguration Day, it will be the worst market performance between an election and inauguration since 2009, during the global financial crisis. Following Trump's win, stocks soared on hopes for tax cuts and deregulation. Concerns over inflation and rising interest rates have since dampened investor enthusiasm. Policymakers now question the feasibility of Trump’s proposed tax cuts and tariffs, as they could exacerbate inflation and the federal deficit. The December jobs report, which showed a gain of 256,000 jobs, further complicates the outlook, raising concerns about economic overheating.
