Market Meltdown: Trump Points Fingers at Biden-Harris Leadership
Former President Donald Trump has taken to social media to blame President Joe Biden and Vice President Kamala Harris for the dramatic drop in the stock market, attributing the decline to their leadership amidst rising fears of a U.S. recession. Trump’s comments were posted early Monday morning on Truth Social, where he stated, “STOCK MARKETS ARE CRASHING, JOBS NUMBERS ARE TERRIBLE, WE ARE HEADING TO WORLD WAR III, AND WE HAVE TWO OF THE MOST INCOMPETENT ‘LEADERS’ IN HISTORY. THIS IS NOT GOOD!!!”
Trump’s remarks come as the Dow Jones Industrial Average plummeted 1,182.93 points, or 2.98%, shortly after the opening bell, following a 611-point drop on Friday. The S&P 500 and Nasdaq also saw significant declines, with the S&P down 3.53% and the Nasdaq dropping 4.8%. These figures represent a severe hit to the markets, which had previously been on a steady rise.
The sharp decline in the stock market is not isolated to the United States. Global markets are also feeling the impact, with Japan’s Nikkei 225 experiencing a 12% drop, its worst one-day fall since 1987. European markets followed suit, with widespread sell-offs driven by fears of a slowing U.S. economy. This global reaction underscores the interconnected nature of today’s financial markets and the broad concern over economic stability.
Investors are reacting to several worrying economic indicators. Last week’s jobs report revealed a surprising rise in the U.S. unemployment rate, coupled with slowed hiring. This news has compounded concerns that the economy is cooling amidst high prices and elevated interest rates. Manufacturing activity is shrinking, and dismal forecasts from major U.S. technology firms have further shaken confidence. A weak jobs report and shrinking manufacturing activity in the world’s largest economy have pushed the Nasdaq 100 and Nasdaq Composite into a correction last week.
The current market turmoil can be attributed to a growing lack of confidence in economic leadership and the anticipation of a recession. Trump emphasized this point by sharing comments from Cantor Fitzgerald’s CEO, Howard Lutnick, who said, “‘Japan down 12%, India down 6%. Germany way down also. U.S. really bad. This is a preview of the world markets without Donald J. Trump in the White House. None of this happens if Trump is in. Kamala and the markets don’t go together. She’ll destroy the markets. She’s in power now and look at what is happening. One week of the fake media saying better polls and you get a market crash.'”
Investors seeking safer assets have caused bond yields to slide, with the 10-year U.S. Treasury note dropping to 3.7379%. The CBOE Volatility Index, Wall Street’s “fear gauge,” spiked to its highest level since the early days of the COVID-19 pandemic, reflecting heightened investor anxiety.
Tech giants, which have been significant drivers of market growth in recent years, are among the hardest hit. Apple fell 8.4% after Berkshire Hathaway slashed its stake in the company. Nvidia dropped 9.7% following reports of delays in its upcoming AI chips, while Microsoft and Alphabet also saw substantial losses. Financial firms are not immune to the downturn. Bank of America led the declines among big U.S. lenders, falling 4.5%. Crypto-linked stocks also suffered, with Bitcoin hitting its lowest price in five months, dragging Coinbase Global, MicroStrategy, and Riot Platforms down with it.
Trump’s posts are not only a critique of current economic policies but also an attempt to contrast his administration’s performance with the present. By citing Lutnick’s comments, Trump is reinforcing his narrative that the current administration is ill-equipped to handle economic challenges. “STOCK MARKETS CRASHING. I TOLD YOU SO!!! KAMALA DOESN’T HAVE A CLUE. BIDEN IS SOUND ASLEEP. ALL CAUSED BY INEPT U.S. LEADERSHIP!” Trump posted Sunday night.
Market analysts are closely watching for any signals from the Federal Reserve regarding interest rate cuts, which could help stabilize the markets. Traders now see a 98.5% probability that the U.S. central bank will cut benchmark rates by 50 basis points in September, compared to an 11% chance seen last week, according to CME’s FedWatch Tool. “I am reluctant to believe the Fed would start the easing process with a 50 bps cut, but if the next seven weeks of data are consistent with this week’s, the Fed should be aggressive,” said Ronald Temple, chief market strategist at Lazard.
The economic landscape remains fraught with uncertainty, and the response from both the government and financial institutions will be critical in navigating these turbulent times. As the situation develops, the interplay between political leadership and economic policy will continue to be a focal point for both investors and the general public. With several Fed officials scheduled to speak this week, any indication of policy easing might soothe investors’ nerves and help mitigate some of the current market instability.
That’s as stupid and risky as Trump’s claiming the market rise was due to Trump. Markets move for many reason, the President is not one of them. And wtf did Trumpy expect given the rate increases to curb spending therefore curb inflation all of which is working.
The market is stiil high after a 1,000 point fall. If it’s the President’s fault, then Trump should kiss Biden’s ass while screaming “I’m not worthy, since Biden’s market is still better than Trump’s, even after the last few days. .
Meanwhile, you can see Trump being bought and sold all day long. .
Yas gives, Trump loves Chinese tik tok now.
Now he likes bit coin after he got donations.
He meets with donor ceo’s and suddenly wants expedited green cards for immigrants to take American jobs. .
Trump gets Musk money and says ev’s are in credible.
The man is scared and for sale. With enough cash, we can make him a Democrat.
I agree Frank. The problem is that most people are not sophisticated investors like you and I. Most of them, including many on this blog do not know how to invest, much less know how the markets swings.
Does today’s market prove how far Trump has his head up his ass?
Live by the sword…..
I do not give a shit what Trump says.
Who is in charge?
How is the economy?
How are the Markets?
How are the Jobs?
Who is running the administration?
This is ALL on Biden and the Dem policy’s!
And yes Kamala as well!
Period!
You ask good questions.
Biden is still in charge. Our economy is the best in the world after coming off of Covid. Have you investigated China’s economy lately?? The economy is fine, bumps are to be expected. But still, best economy of all of the countries in the world. Markets were a bit overpriced (especially the magnificent 7) , due to tech stocks and AI – so now they are correcting. No big deal. Yup I lost money today and so what? I will make it back tomorrow or the next day because I am a long term investor. I hope you are too! We added 140,000 thousand jobs which means the economy is still growing but it is cooling as expected to get inflation under control. Biden and his cabinet are still running the administration, they have not left. YES!!! The best economy in the world is on Biden, you are correct. SO WHY ARE YOU LISTENING TO A CONFIRMED TAX CHEAT, LIAR, DIGITAL RAPIST, AND ALL AROUND LOSER?????
All Trump is doing is seizing on one day’s bumpy news to make the claim that he is your savior in chief. He is not.
Tom, Dude….
Like I said; fixed assets! That’s where yesterday’s money disappeared. So today I sold cd’s at a profit, bought some nvidia and another higher risk player and brought in 5% on nvidia and 10% on the other. Over five grand in profit. Will reinvest back to cds tomorrow, half the proft and taking the rest to Disney to drink bud lite laughing all the way. I live and llove capitalism like only a closet communist can.
Sorry, but the falling knife does not bounce. Falls fast but takes a bit to come back and is inconsistent across the board. My kft has been down well before covid and if you can’t rebound on mac n cheese in a pandemic……! You will come back, hopefully fast, but may take a bit.
Spot on with your post IMO, with the addition that the recovery is also inconsistent and folks living paycheck to paycheck who doesn’t get the stimuli checks anymore, no unions, spend like they do, plus inflation are still hurting.
Trickle down not wirking once again!
The market tanked and at the trough was still high. The roller coaster is not down yet I think.
Yes Frank, I realize there are still people hurting. But more hurt under Trump in a number of ways. Yes, The past few days have been a real market roller coaster! I get 5.3% or so in my settlement account, cash heavy. I did some shopping too! LOL
Trump is really going CRAZY over Kamala’s VP pick. I think Vance ought to be worried, as JD will have to debate him. Meidastouch Network Live was posting some of Trump’s social media posts today. He is out of his mind badshit crazy scared. Dems have a good team. As an Indie I am looking forward to seeing what they can do and can they keep the energy going!
Oh and the FL Appeals Court reversed GOP /Trump sympathizer Judge Cannon and the documents case is back on!!! And Judge Chutkin in DC circuit just got his insurrection case back from the SCOTUS and she is pressing Trump team hard. She has required them to show up mid August to discuss evidence and what’s good versus what’s immunity. She wants to get the case to trial before election day. And Judge Merchan in the Manhattan case just gave Trump bad news too!!! Right now Trump is in a world of legal poopie!!! He is freaking out about everything! And its only going to get worse for him! LOL
Prayer works. Remember I said a year ago that I was praying for at least one of the parties to come up with a team I could vote for. Well…….:)