After a turbulent month for U.S. stocks, many investors are wondering: What’s happening with the market, and where is it heading next?

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.

Tariffs and sweeping DOGE cuts have fueled intense volatility as investors' outlook for markets and the economy in 2025 dims.

The U.S. stock market has lagged behind European indexes since Donald Trump returned to office in January, weighed down by confusion over the president's economic policies while European equities have been more stable due to a combination of factors,