The stock market experienced intense volatility in the first half of 2025 following President Donald Trump’s inauguration. From mid-February to mid-March, the S&P 500 dropped 10% in just 20 trading days, prompted by fears of a global trade war, culminating in a historic two-day decline of 10.5% after the announcement of “Liberation Day” tariffs on April 2. However, following a 90-day pause on tariffs, the index rebounded with a 9.5% surge on April 9.
Throughout these months, significant market fluctuations included one of the fastest 10% drops, a four-session decline of over 12.1%, and the S&P achieving its longest winning streak in 20 years. By six months post-inauguration, the CBOE Volatility Index (VIX) nearly doubled, reaching 27.86.
As the volatility continues, analysts predict this dynamic will persist due to Trump’s ambitious policy changes. This environment poses opportunities for investors who can employ fast-acting trading strategies rather than traditional buy-and-hold approaches.
