President Joe Biden has spoken out about the S&P 500’s record high, interpreting it as a positive indicator for the U.S. economy.
What Happened: Biden, in a rare comment on the stock market, took to social media platform X to share his views on the S&P 500’s record-breaking performance. He described it as “good news for folks as we start the weekend” and a “sign of confidence in America’s economy,” reported Bloomberg.
The S&P 500 index topped 5,000 for the first time on Friday, driven by the performance of big-tech stocks and speculation about an imminent interest rate cut by the Federal Reserve. This milestone comes after a challenging week for Biden’s reelection campaign, which brought attention to his age and mental acuity.
Why It Matters: Despite the recent record, Biden has historically refrained from emphasizing market achievements, even when promoting his economic initiatives such as infrastructure spending, advanced chip manufacturing funding, and the revitalization of U.S. manufacturing.
Biden’s recent acknowledgment of the stock market’s success is a shift from his previous stance. In December, he mocked Donald Trump’s prediction of an economic downturn under Biden’s leadership. Trump 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.
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.
Image Via Shutterstock