President Joe Biden has, after a prolonged period of restraint, finally addressed the impressive performance of the stock market under his administration, a metric former President Donald Trump frequently cited. While it is widely acknowledged that stock market gains do not necessarily equate to a healthy overall economy, the measure remains a tempting target for gauging a president’s economic success given its objective nature.
Before being banned from Twitter, Trump often claimed credit for the stock market’s robust performance during his tenure, despite mixed results, including significant market downturns in 2018, 2019, and 2020. Trump now uses his Truth Social platform to claim credit for stock market gains during Biden’s term, over three years in, while also diminishing the market’s significance.
In contrast, Biden has largely avoided commenting on stock market performance, even as the market achieved 33 record highs in the first six months of his presidency. The first 100 days of Biden’s administration were noted as having the strongest stock market performance of any president in the past 75 years. Despite this reticence, the first half of 2024 has seen particularly remarkable stock market records.
In early February, for instance, the S&P 500 closed above 5,000 for the first time, followed by other indexes. The Dow Jones Industrial Average recently breached the 40,000 mark, driven in part by the performance of companies like Nvidia, which also spurred the Nasdaq past 17,000. This unprecedented streak has led the Biden campaign to finally leverage these records to contrast Biden’s record against Trump’s. On the day the Dow crossed 40,000, Biden’s campaign took the opportunity to highlight this achievement, with comments from both the campaign communications director and the White House press secretary.
While Biden continues to personally distance himself from touting stock market highs, recognizing its limitations as a broad economic indicator, his campaign has embraced the narrative. With economic perceptions being a major vulnerability for Biden, highlighting strong stock market performance may bolster his position as the election approaches.
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