Key Takeaways The S&P 500 is off to its worst start for a presidential term since 2009, when Barack Obama entered the White House in the midst of the global financial crisis.Traditionally defensive sectors have outperformed since Trump's inauguration amid growing concern that tariffs could usher in a period of stagflation.

Traders work on the floor of the New York Stock Exchange on March 5, 2025, following two days of dramatic losses in the stock market after the Trump administration imposed tariffs on Mexico and Canada.