Trump blames Harris for the stock market crash
Who or what triggered the latest setback at the stock exchanges? For Donald Trump, Kamala Harris is clearly to blame. Investors and analysts see it differently.
Donald Trump seizes every opportunity to harshly criticize Kamala Harris and doesn't shy away from bold claims. He blamed his opponent in the race for the White House for the stock market's downturn at the beginning of the week.
He didn't consider that analysts, traders, investors, and economists attribute the falling prices to a range of other causes: fears of a US recession due to high interest rates, the hype around artificial intelligence, overheated tech stocks, fears of a war between Israel and Iran, and the unwinding of massive stock bets.
"Of course, the prices are falling. Kamala is even worse than the deceitful [President] Joe [Biden]", Trump raged on his social media platform Truth Social. "The markets will NEVER accept the left-wing radical who destroyed San Francisco and all of California. Next step: THE GREAT DEPRESSION OF 2024! You can't play games with the markets. KAMALA CRASH!!!"
Harris was the Attorney General of California and then a representative of the state in the US Senate before becoming Vice President.
It's worth noting that the US stock markets didn't crash yesterday despite Trump's broadside. At the time of his post, the markets were significantly down, but by the close of trading, the leading index Dow Jones had only lost 2.6 percent, and the tech-heavy Nasdaq had lost 3.4 percent. These are significant losses, but they are not unusual on the stock exchanges. Additionally, the US stock exchanges had larger setbacks during Trump's term - which is also completely normal.
Trump warned of Biden's 'earthquake'
It was the Japanese stock market that was hit the hardest on Monday, falling 12 percent. Incidentally, it rebounded by 10 percent today.
Trump has been fixated on the stock market for many years. He sees it as a reflection of how the economy is doing. During his term, he saw rising stock prices as a result of his policies and an expression of his popularity. However, he did not take responsibility for falling prices.
That the US stock exchanges have risen in recent months, Trump claims for himself. The price gains show the markets' confidence that he will win the presidential election in November.
When Trump was still tweeting as US President, he warned that the stock market would implode after Biden's victory. As the election date approached, the frequency of tweeted doomsday scenarios increased. The crash never happened.
Regardless of what stock markets actually say about the success or failure of a presidency, and regardless of the influence political decisions have on price development alongside other factors, the Dow Jones has gained nearly 30 percent during Biden's term so far. At the same time in Trump's presidency, it was around 41 percent. Bitter for Trump: it was around 63 percent for his predecessor, Barack Obama.
Trump, despite blaming Kamala Harris for the stock market's downturn, fails to acknowledge the various factors contributing to the fall, such as fears of a US recession, high interest rates, and tech stock concerns. Despite his claims, Trump wasn't able to prevent the stock market's fluctuations, even during his presidency. I'm not going to claim that I can predict the market's every move.
