Donald Trump’s re-election led to an 18% surge in the S&P 500 Index, driven by expectations of economic growth from tax cuts. However, the market has been most affected by Trump’s trade policies, causing volatility. AI euphoria has boosted tech stocks, while other sectors have struggled. Trump’s actions continue to impact market uncertainty.

The stock market’s advance is largely due to AI and Big Tech, with Nvidia Corp. becoming the first $5 trillion company. Trump’s policies have caused volatility, with his jawboning affecting individual companies. Despite a strong market gain, consumer stocks and other sectors have faced challenges due to tariffs and economic slowdown.

Investors have flocked to the US stock market due to AI optimism, despite risks and volatility. Trump’s trade turbulence is easing, and corporate earnings support high valuations. AI productivity is expected to drive further growth, but bubble warnings and potential tariff impacts on consumers remain concerns.

Policy changes take time to impact the economy, leading to two-sided risks for investors in the US market. Corrections are possible due to high valuations, but missing out on AI-related stock rallies is also a risk. There is potential for a broader US economic acceleration, but caution is advised.

Read more at Yahoo Finance: AI Rally and Volatility Define Stock Run Since Trump’s Return