Did Biden And Harris Cause The Market Crash? Trump Says Yes!

In a recent statement, former President Donald Trump attributed the recent financial markets crash to the current U.S. leadership, particularly targeting Vice President Kamala Harris and President Joe Biden. Trump took to social media, stating, "STOCK MARKETS CRASHING. I TOLD YOU SO!!! KAMALA DOESN'T HAVE A CLUE. BIDEN IS SOUND ASLEEP. ALL CAUSED BY INEPT U.S. LEADERSHIP!"

Trump's comments come amid growing concerns over the state of the U.S. economy and its impact on global financial markets. He has been a vocal critic of the Biden administration, often blaming its policies for economic instability and market downturns.

US Stock Market Plummets Amid Recession Fears And High Interest Rates

The US stock market tumbled on Friday due to growing concerns over the economy's pressure from high interest rates and rising unemployment, according to a report by Fortune. The report also highlighted that worries are escalating as the Federal Reserve's anticipated rate cut in September may not be sufficient to counterbalance the ongoing high interest rates, as reported by Hindustan Times.

The S&P 500 fell by 2.5% by midday, nearing its lowest point since 2022 and on track for its first consecutive loss greater than 1% since April this year. Similarly, the Dow Jones Industrial Average dropped by 2.4%, losing 954 points by 11:30 a.m. Eastern time, while the Nasdaq composite plunged by 2.9%. The Russell 2000 index saw a sharper decline, plummeting by 4.2%.

Bond markets also faced turmoil, with treasury yields falling significantly to 3.81% from 3.98% on Thursday and 4.70% in April. The downturn in the stock market is attributed to several factors, as reported. The US experienced a notable hiring slowdown in July, adding only 114,000 jobs, well below the economists' forecast of 175,000 new jobs and significantly lower than last year's monthly average of 215,000 jobs. Unemployment rose to 4.3%, the highest since October 2021, contributing to the negative investor sentiment.

Additionally, underwhelming profit figures from major tech companies exacerbated the situation. Amazon shares fell by 9.9% after reporting weaker-than-expected revenue for the quarter, while Intel's profits dropped, causing its shares to plummet by 26.5%. Although Apple shares were up by 2%, their momentum had slowed down, as per media reports.

These developments follow a previous rally in shares of AI-led companies, drawing parallels to the dot-com bubble of the late 1990s. Moreover, the upcoming US presidential election in November has created uncertainty among investors, adding to the market volatility.