After using market global sold out as an opportunity to attack Vice President Kamala Harrisformer president Donald Trump and his republican party Allied markets were noticeably calmer on Tuesday as stocks recovered some of their losses.
this S&P 500 Index ended Tuesday’s session up just over 1%, while Dow Jones Industrial Average The gain was nearly 300 points, or 0.8%, breaking a three-day losing streak.
Markets were generally down on Monday, with the S&P 500 down 3% and the Dow Jones down 2.6%. The market crash comes as recession fears grow, in part due to lower-than-expected temperatures last week employment report and worry United States Federal Reserve Maintaining interest rates that are too high for a long time.
Republican presidential candidate Trump quickly sought to portray Monday’s market rout as the first chapter of a broader economic disaster, which he blamed on de facto Democratic nominee Harris and gave the sell-off a title. nickname “Kamala crashed.”
“Trump Cash vs. Kamala Collapse!” Trump once tweeted.
His running mate, Ohio Senator. JD Vancealso charged in an
But as Wall Street rallied on Tuesday, the Republican line of attack was quickly taken away.
Trump published at least nine separate posts on The Truth Society on Monday blaming government policies for the stock market plunge. President Joe Biden and Harris.
On Tuesday, as stocks recovered, Trump remained silent on the market on social media.
The Trump campaign did not respond to CNBC’s repeated requests for comment.
Trump’s shift in strategy is the result of his tendency to tie political campaign messaging to markets that are inherently volatile. When the market goes up, he usually tries to take the credit, and when the market goes down, he usually blames his opponents.
exist JanuaryWhen the Dow Jones and S&P hit record highs, Trump said it was because investors were betting on his ability to defeat Biden, who has since Drop out of school Run for and support Harris.
“This is the TRUMP stock market,” Trump wrote in an all-caps TRUTH SOCIETY. postal“Because I’m polling so well for Biden and investors are predicting I’m going to win, that’s going to drive the market higher.”
“Throughout history, I think politicians have avoided trying to tie their wealth to the stock market as a basis for their policies or other decisions,” Moody’s chief economist Mark Zandi told CNBC on Monday. A signal for anything because the market is always moving up and down.
“Former President Trump was the first to do this,” Zandi added. “I’m confused by this.”
Zandi believes that in addition to the political risks, Trump’s impulse to use the stock market as a campaign issue also reflects his misunderstanding of how to measure the health of the economy and the thinking of voters.
“For most Americans, the most important thing right now is inflation, prices, grocery prices and rent,” Zandi said. “I think for most, the vast majority of Americans, when they think about their Financially, the stock is at the bottom of the list, very bottom.”
In polls this election cycle, voters have consistently ranked the high cost of living as their top concern.
Trump has seized on the gloomy economic sentiment to criticize White House policies even as the U.S. economy has been in the midst of a steady but slow recovery from the pandemic, progress that has eclipsed other developed nations.
