Former President Donald Trump's old prediction that the stock market would "crash" if then-candidate Joe Biden was elected in 2020 came back to bite him afer the Dow Jones hit a record high on Wednesday.
The Dow closed at a historic high of 37,090, climbing over 500 points or 1.4 percent for the day, surpassing a previous peak from January 2022. The boost was fueled partly by the Federal Reserve’s decision to maintain steady rates due to progress in controlling inflation.
MeidasTouch recently spotlighted this claim in a video and juxtaposed it against the record-breaking news of Wednesday.
Social media resurfaced Trump’s April 2019 post on X, formerly Twitter, boasting about the market’s high while bemoaning the impeachment threats over his alleged attempts to seek information about Biden from Ukraine.
At the time, Trump wrote:
"You mean the Stock Market hit an all-time record high today and they’re actually talking impeachment!? Will I ever be given credit for anything by the Fake News Media or Radical Liberal Dems? NO COLLUSION!"
You can see the post below.
Trump's resurfaced claim exposed him to significant mockery online.
The Dow's surge capped a remarkable period for the U.S. stock market, including gains in the tech-heavy Nasdaq and the S&P 500, driven by robust performances in health-care stocks and encouraging earnings from technology firms.
Recent weeks have seen an exuberant surge in the markets, fueled by indications that the Federal Reserve might halt its interest rate hikes. Inflation has notably decreased since the Fed commenced raising borrowing costs last March to counter decades-high price surges.
The Federal Reserve now anticipates up to three rate cuts in 2024, contingent on the state of the economy, as highlighted in a Wednesday announcement by Chair Jerome Powell. Powell emphasized the holistic consideration of various factors like growth, inflation, and labor market data in determining policy changes. He underscored the need to evaluate the collective data for future decisions.
Despite the economy’s resilience and consecutive quarters of growth, there are signs of cautious consumer sentiment and a housing market slowdown. Mortgage rates over 7 percent are hindering potential home buyers, contributing to a lack of market activity. Consumer confidence has been on a downward trajectory for four consecutive months.
