Former President Donald Trump on Monday asserted that the record-high stock market under President Joe Biden is a result of investors’ confidence in his potential return to the White House.
What Happened: Trump, in a post on his Truth Social platform, claimed that his lead over Biden in November polls is driving the optimistic outlook on Wall Street.
“THIS IS THE TRUMP STOCK MARKET BECAUSE MY POLLS AGAINST BIDEN ARE SO GOOD THAT INVESTORS ARE PROJECTING THAT I WILL WIN, AND THAT WILL DRIVE THE MARKET UP,” Trump wrote on his Truth Social platform.
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.
Despite Trump’s assertions, Biden’s campaign team has dismissed his claims, saying he is “desperately trying to take credit for the stock market hitting record highs under President Biden.”
Why It Matters: This is not the first time Trump has made such assertions. He has repeatedly 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. He also drew parallels with former President Herbert Hoover, whose tenure saw the Great Depression despite inheriting a stable economy.
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.
However, as the 2024 elections approach, Wall Street traders are showing a surge of unease, as demonstrated by the Cboe Volatility Index, Wall Street’s so-called “fear gauge,” which reveals an alarmingly high level of anxiety among traders.
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.
