Former President Donald Trump recently claimed that the record-high stock market under President Joe Biden is a result of investors’ confidence in his potential return to the White House. Trump made this assertion on his Truth Social platform, stating that his lead over Biden in November polls is driving the optimistic outlook on Wall Street.
While Trump’s claim comes amid a close race between him and Biden in the general election match-up, with Trump leading by an average of 3.8 percentage points, according to a Real Clear Politics poll, Biden’s campaign team has dismissed his claims. They argue that Trump is “desperately trying to take credit for the stock market hitting record highs under President Biden.”
This isn’t the first time Trump has made such assertions. He has repeatedly predicted a stock market crash if he doesn’t win the presidential election. He expressed this sentiment before the 2020 election and more recently ahead of this month’s Iowa caucuses. Trump has also drawn parallels with former President Herbert Hoover, whose tenure saw the Great Depression despite inheriting a stable economy.
Earlier this month, Trump claimed that his victory in the Iowa Caucus caused a significant downturn in China’s stock markets. His comments suggest that Beijing is apprehensive about his potential return to the White House.
However, as the 2024 elections approach, Wall Street traders are showing a surge of unease. The Cboe Volatility Index, also known as Wall Street’s “fear gauge,” reveals an alarmingly high level of anxiety among traders.
Meanwhile, Biden 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 stock market continues to reach new heights under President Biden, the debate over the factors driving this growth will likely persist. Investors will closely watch the political landscape and any potential policy changes that could impact the market. Only time will tell how much influence the presidential race will have on stock market performance.
