Will the Stock Market Crash as Tariffs Hit the Economy in 2025? History Offers an Important Clue.
The S&P 500 crashed when President Trump unveiled his "Liberation Day" tariffs in early April, but the benchmark index has since staged an astounding recovery. History says President Trump's tariffs could cause a recession, and the S&P 500 has declined by an average of 31% during past recessions. The S&P 500's best days and worst days often occur in clusters, so investors that sit on the sidelines during drawdowns risk missing the rebound.