The Dow, S&P 500 and Nasdaq Composite have gained 19%, 30% and 39% respectively since Trump's second term began, through October 13. The article argues the bull market faces two threats, the first being 'Trumpflation', as annualized inflation hit a three-year high of 4.2% in May, more than double the Fed's 2% target. A New York Fed analysis estimates tariffs added 2.9 percentage points to goods price inflation by February 2026. Iran's closure of the Strait of Hormuz after operations began on Feb. 28 has pushed fuel prices sharply higher and is spreading into core inflation, raising the chance the Fed under Chair Kevin Warsh must hike rates aggressively. The article also says the AI infrastructure build-out, the market's top driver, has its own downsides.
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inflationDonald TrumptariffsKevin WarshQQQSPY
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Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 709.82 |
| Change that session | -2.50% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 763.31 |
| Change that session | -1.10% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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