While former President Donald Trump is attempting to take credit for the stock market’s success under Joe Biden’s presidency, the Biden administration has rather chosen to downplay this achievement, focusing instead on his economic agenda.
What Happened: Trump, who had closely associated himself with the stock market during his presidency, is now trying to claim responsibility for the recent record highs. On Monday, Trump asserted that his lead in potential 2024 polls is fuelling Wall Street’s positive sentiment.
The Dow Jones Industrial Average and the S&P 500 index have seen record highs in the past week, a fact that Trump is eager to leverage. However, market experts attribute the stock market rally to the Federal Reserve’s potential interest rate cuts and hopes for the U.S. to avoid a recession.
Despite this, Biden has refrained from boasting about the stock market. "The president knows most Americans don't experience the economy through the stock market. That's why instead he's focused on gas prices being down, 14 million new jobs being created, unemployment at record lows, and pay for low-wage workers growing at the fastest pace in decades," a senior spokesperson for Biden’s 2024 presidential campaign told The Hill.
"Trump talks about the stock market because he's focused on delivering for Park Avenue."
"During his presidency, he passed a tax scam that rigged the economy for big corporations at the expense of Main Street businesses, and just last week he promised to deliver an even larger corporate giveaway."
Ellen Hughes-Cromwick, a former chief economist at the Commerce Department under former President Barack Obama, suggested that Biden’s focus on a strong economy and lower inflation, which led to the stock market highs, is a better way to communicate with Americans.
"I like the idea that this administration is focused on the eye of the tiger. The eye of the tiger is all these things that culminate into performance in the stock market, the things that really affect that expectation about future growth, future earnings," she said.
"So, if you're focused on … the things that cause the stock market to go up, you're serving the entire American public," added Hughes-Cromwick, a fellow at the centrist Democratic think tank Third Way.
Why It Matters: The stock market’s performance under Biden’s presidency has become a point of contention between the two political rivals. Trump has previously predicted a stock market crash if he doesn't win the presidential election, a sentiment he expressed before the 2020 election and more recently ahead of this month's Iowa caucuses.
Earlier, this month, the former president also claimed that his victory in the Iowa Caucus has caused a significant downturn in China’s stock markets. Trump’s comments suggest that Beijing is apprehensive about his potential return to the White House.
Meanwhile, Biden earlier took a jab at Trump for his prediction that didn't come to pass. Last week, Biden marked the record-high stock market numbers with a tweet that reminded Trump of his pre-election prediction. Trump had forecasted a "stock market collapse the likes of which you've never had" if Biden won the 2020 election.
As the 2024 elections draw near, Wall Street traders are experiencing a notable increase in apprehension. This is evident through the Cboe Volatility Index, commonly known as the “fear gauge” on Wall Street, which indicates a significantly elevated level of anxiety among traders.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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