Biden's Stock Market Gains Have Evaporated, CNN Business Reports
U.S. President Joe Biden, at least publicly, isn't as preoccupied with the stock market as his predecessor was. Still, the president has been hit hard by the tumult on Wall Street this year. According to Paul R. La Monica of CNN Business, the S&P 500 has now lost all of its gains since Biden's inauguration last year.
Photo Insert: The S&P 500 was up nearly 24% from Inauguration Day through the end of last year.
The market is in a spiral in 2022 as a result of rising oil and gas prices following Russia's invasion of Ukraine, broader inflation concerns coming from prolonged supply chain disruptions and expectations of aggressive interest rate hikes by the Federal Reserve.
Since January 20, 2021, the S&P 500, one of the broadest indicators of the US stock market and economy, has dropped 2.7 percent. Following Monday's 3.9 percent market drop, stocks slid into negative territory for the Biden era.
The blue-chip index, which includes IT behemoths Apple, Microsoft, and Amazon, as well as Elon Musk's Tesla and Warren Buffett's Berkshire Hathaway, has dropped 21% this year alone.
It's a stark turnaround for the Biden stock market. The S&P 500 was up nearly 24% from Inauguration Day through the end of last year.
However, many analysts are quick to point out that the stock market is not representative of the economy as a whole. What occurs on Wall Street does not always have a direct influence on Main Street, particularly for those who are not active investors.
In the first 510 days of Ronald Reagan's presidency, the stock market dropped 16.5 percent, during which time inflation was at an all-time high. In the early years of George W. Bush's administration, stocks were down 25% as the market fought to recover from the dot-com crash and the aftermath of 9/11.
However, both Reagan and George W. Bush were re-elected. Meanwhile, early in both George H.W. Bush's and Donald Trump's administrations, stocks rose by more than 20%. Neither of them was re-elected.