Even though Biden continues bragging about his economic performance, US stock markets are crashing at an unprecedented rate.
This depicts a significant decline in investors’ confidence; they are hesitant to put their money into the financial system.
Stock Markets Crashed, Investors Lost Billions
On Monday, the Dow plunged by 2%, diving to the lowest point of the current year. Similarly, Nasdaq Composite nosedived by 4.3%, showing poor performances amid the rising economic uncertainty.
Reportedly, tech and energy sectors are the worst impacted. According to the Wall Street Journal, this plunge is caused by a variety of factors.
For instance, markets are working at their lowest as inflation is touching a 41-year high. In order to control inflation, the Fed started increasing interest rates, which is a worrisome reality for the stakeholders.
This surge in interest rates is shaking investors’ confidence. They are waiting for the Fed to take decisive action to stop increasing these rates.
The stock market is tanking again today, meaning we are rapidly approaching the stock market turning negative for the 18 months Joe Biden has been in office. It’s truly remarkable how Biden is failing on every possible issue simultaneously. I’ve never seen anything like it.
— Clay Travis (@ClayTravis) May 9, 2022
Not only this, but some news outlets believe this growing inflation is likely to push many economies into recessions, as warned by the Bank of England.
Likewise, cryptocurrency is also having its worst fall in the recent past; it dropped to 15% on Monday alone.
In November, crypto touched its highest value; since then, its value has plunged by almost 60%.
Markets Crash Will Impact Every American
While some people are showing little interest in these events, as they do not hold direct stocks in any company, these developments would impact every single American.
This is due to the fact that Wall Street proceedings are intertwined with the average household income, up to a great extent.
With the market’s recession, employment is likely to go down significantly, leaving thousands of Americans without good jobs.
Likewise, the value of currency will further decline, which would eventually strain the consumer price index.
Markets, in general, decide the value of the Gross Domestic Product (GDP), which means any potential recession will scale down the GDP of the country as well.
Medical tyranny, WW3, the stock market is crashing, food processing centers buring down all over the country, the southern border is completely unsecured with millions of unvetted illegal immigrants crossing into the US, gas prices are through the roof. LETS GO BRANDON!! pic.twitter.com/1L7AaT331c
— Goon7 (@CannonJ76) May 9, 2022
One of the primary reasons for the global recessions of the 1930s and 2008 was the market crash, which is the same thing happening right now.
This comes at a time when President Biden is touting his economic performance, despite data speaking against him.
In the first quarter of the current fiscal year, the GDP declined by 1.4%, while inflation rose to 8.5%.
Meanwhile, global developments are not helping Biden either. The Russia-Ukraine war, China COVID lockdown, and stagnated supply chains suggest a murky future for the economy.
A financial officer at an investment adviser RegentAtlantic Andy Kapyrin called this market crash “just the beginning” of a “whiplash.”
This latest crash happened ahead of a new report by the Bureau of Labor, which will be released later this week.
While the overall inflation number for April is likely to decrease a bit, compared to March, investors are still worried about the possible impact of the upcoming report on the market.