For better or worse, investors are living through Trump's stock market. Here's why

The transcript opens by highlighting Trump's self-proclaimed status as the pro-stock market president, noting 53 all-time record highs since the election and a 13% S&P 500 gain in just 13 trading days — a pace only matched during the peak of the dot-com bubble in March 2000.

However, Trump's presidency has also been marked by some of the market's sharpest drops. The Dow fell nearly 1,700 points in a single session, with the S&P 500 and NASDAQ posting their worst performance since 2020. Within the first two months of Trump's second term specifically, the S&P 500 entered correction territory at one of the fastest rates since World War II, driven primarily by uncertainty over his tariff policies.

The situation worsened with Trump's 'Liberation Day' tariff announcement, which pushed the broad market index close to bear market territory. Despite the severity of these sell-offs, the recoveries proved equally dramatic. Both major pullbacks in Trump's second term recovered faster than the historical median of 34 days, with one rebound erasing a 9.1% decline in just 16 calendar days — tied for the ninth fastest recovery since World War II.

Strategists cite three main factors behind the market's resilience: artificial intelligence, overall corporate strength, and investor psychology. These elements appear to be providing a supportive floor beneath markets even as policy-driven volatility persists.