The stock market has been on a roll, with the S&P 500 and the Dow Jones Industrial Average closing at all-time highs in December and January for the first time in about two years. However, the surge in the stock market has led to a political debate, with former President Donald Trump and current President Joe Biden both vying to take credit for the rise.
Former President Trump claimed credit for the stock market’s success in a social media post on Truth Social, attributing it to his polling advantage over Biden. On the other hand, Transportation Secretary Pete Buttigieg countered Trump’s claim, stating that President Biden deserves credit for the stock market rise.
While Buttigieg claimed that the stock market hit an all-time high under President Biden and not under President Trump, it is important to note that the S&P 500 regularly reached record highs during Trump’s presidency as well. The stock market can be influenced by investor perceptions and crowd psychology, making it a complex indicator of the broader economy.
Currently, the S&P 500 is hovering around 5,100, well above what it was at the end of Trump’s term. Despite the year-long slide in 2022, the market has rebounded under Biden’s presidency, setting new records into early 2024.
In conclusion, while both Trump and Biden have seen the stock market reach new highs during their presidencies, it is essential to consider various factors that contribute to the market’s performance. The stock market’s health can influence economic perceptions, but caution is necessary when using it as a sole indicator of economic success.
