🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Dow loses almost all that it gained during Trump's presidency

Published 03/18/2020, 07:31 PM
© Reuters. The Dow Jones Industrial Average is displayed after the closing bell on the floor of the New York Stock Exchange (NYSE) in New York City
US500
-
DJI
-

By Noel Randewich

(Reuters) - As Wall Street extended its deep sell-off on Wednesday over fears about the coronavirus, the Dow Jones Industrial Average effectively erased the last of the once sizeable gains it made under U.S. President Donald Trump.

Trump's request for Congress to approve $500 billion in cash payments to taxpayers along with $50 billion in loans for airlines failed to stem the bleeding in the stock market, where the Dow Jones Industrial Average (DJI) tumbled almost 11% before partly recovering to end down 6.3%.

Trump has repeatedly boasted about and taken credit for the stock market's performance during his three years in office, including as recently as last Saturday after a strong rebound the day before. Trump has also warned that Wall Street would fall if a Democratic candidate wins the November presidential election.

By Wednesday's close, the Dow was up just 0.4% from where it was on Jan. 20, 2017, the day of Trump's inauguration. The Dow is still up almost 9% from when Trump unexpectedly won the presidential election on Nov. 8, 2016.

Measuring the stock market's performance under the Republican president beginning at his election date captures a surge immediately after he won, dubbed the Trump Bump, as investors became optimistic about Trump's promises to cut taxes and reduce regulations.

At its February peak, the Dow had surged more than 60% from Trump's election day.

The S&P 500, a broader measure of the U.S. stock market, tumbled 5.2% on Wednesday, leaving it up just 12% since Trump's 2016 election and up 6% from his inauguration. At its peak, the S&P 500 had gained 58% since Trump's election.

© Reuters. The Dow Jones Industrial Average is displayed after the closing bell on the floor of the New York Stock Exchange (NYSE) in New York City

Overall, the S&P 500 has slumped nearly 30% from its Feb. 19 peak and ended a bull market that began in 2009.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.