For one nervous minute, it looked as if the stock market was in for a serious correction. The Dow Jones Industrial Average dropped over 1,000 points in a day, investors around the world were shouting “sell,” and Donald Trump was very, very happy.
The Republican presidential nominee was gloating because just one week into Democratic nominee Kamala Harris’ surging campaign, the idea that he might be able to run during a real economic downturn, rather than the wishful doom and gloom he sells at his rallies, seemed like an unexpected reprieve. Trump took to his failing social media platform to pound out a series of messages blaming the downturn on his political opponent.
In his standard all-caps shout, Trump declared that “VOTERS HAVE A CHOICE—TRUMP PROSPERITY, OR THE KAMALA CRASH & GREAT DEPRESSION OF 2024…”
Just one day later, Trump was silent as markets began a swift recovery. As of Thursday, stocks were enjoying an extended rally that put the Dow at over 40,500. The reality: There is no looming depression—and the economy is looking great.
Since that market blip, a great inflation report has made it seem more likely that the Federal Reserve Bank will cut interest rates at its next meeting. There was more good news on Thursday as the retail sales report showed that consumers are purchasing as if there are few economic concerns. Bank of America’s CEO told CBS’ “Face the Nation” that recession is no longer in the cards, according to the financial institution’s research team.
The result is not just that sharp rise in the Dow, but a six-day rally of the S&P and NASDAQ stock indexes that has completely erased earlier losses.
While Trump has repeatedly proven that he absolutely sucks at predicting the market, the markets are absolutely perfect at predicting Trump.
When the markets are up, Trump will claim credit. When they’re down, he’ll spread blame on Democrats.
In 2020, Trump predicted that the stock market would crash if Joe Biden was elected. That was before he began claiming credit for stock increases under Biden, even laughably insisting that stocks were rising only because Trump was ahead in the polls.
Now Trump is making the same “if you don’t elect me” threats that he made last time. But the market has gone up by 30% since Trump left office. Under Biden, a record number of Americans have become 401(k) millionaires as those rising markets have buoyed their retirement accounts.
Trump’s market predictions are one of his biggest and most obvious lies.
But Trump was still screaming about the “Kamala Crash” in his unhinged speech on Wednesday evening, even as the market was heading back to near-record territory.
Trump seems confused—and not just about the stock market.
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