The Likelihood of a Stock Market Crash Under President Donald Trump Is Rapidly Rising -- and There's One Undeniable Catalyst to Blame

The S&P 500 and Nasdaq Composite hit record highs on April 24, with the Dow Jones Industrial Average close to a new high. During President Donald Trump's first term, the Dow, S&P 500, and Nasdaq Composite gained 57%, 70%, and 142%, respectively. The evolution of artificial intelligence (AI) has driven Wall Street's growth, representing a potential $15 trillion opportunity by 2030. President Trump's Tax Cuts and Jobs Act (TCJA) has also fueled the rally, with S&P 500 companies' share buybacks reaching an estimated all-time high of over $1 trillion in 2025. However, a decision made by President Trump is threatening to cause a stock market crash. The TCJA lowered the peak marginal corporate income tax rate from 35% to 21%, allowing businesses to retain more earnings, which has led to increased share buybacks.