Stories
Trump 2.0 Wall Street Rally Trails First Term, Driven by AI and Earnings
C
CNBC TV18•20-09-2026, 19:17
Trump 2.0 Wall Street Rally Trails First Term, Driven by AI and Earnings
- •US stocks have seen strong gains during the first 20 months of Donald Trump's second presidency, but the rally's pace is slightly behind his first term.
- •The S&P 500 rose 27.6% in Trump 2.0's first 20 months, compared to 28.5% in the equivalent period of his first term; Dow and Nasdaq also lag.
- •Corporate earnings, particularly in technology, and significant investment in artificial intelligence have fueled the current market gains.
- •The AI spending boom, while a driver, is also introducing uncertainty as some executives call for slower development.
- •Rising Treasury yields and other pressures like inflation and oil prices have tested the market, but strong earnings and AI investment continue to support growth.
Key Questions Answered
During the first 20 months of Donald Trump's second presidency, the S&P 500 has risen 27.6%, which is slightly below the 28.5% gain recorded over the equivalent period of his first term.
The market's gains have been powered by strong corporate earnings, particularly in the technology sector, alongside a massive surge in spending on artificial intelligence infrastructure.
The Dow Jones Industrial Average has gained 18.8% in the first 20 months of Trump's second term compared to 33.8% in his first term, while the Nasdaq is up 35.1% against a 43.5% gain during the same stretch previously.
