Wednesday, March 4, 2020

Donald Trump's Very Bad Day in the Stock Market

Today, March 4, President Trump had a very bad day in the stock market.  Yesterday, Super Tuesday for the Presidential primaries, Joe Biden won a series of contests among the Democrats and took the lead in delegates over his principal rival, Bernie Sanders.  Today, the Dow Jones Industrial Average rose almost 1,200 points in celebration. 

Since before his inauguration, Trump has touted a buoyant stock market as one of the hallmarks of his Presidency.  To him, it signaled approval, achievement and prosperity.  Whenever the market showed signs of queasiness, Trump was quick to pummel the Federal Reserve Board for interest rate cuts to prop up stocks.  Trump equated stocks with himself, and stocks seemed to reciprocate.

But not today.  Today, the market loved Joe Biden.  And Trump could only watch the love fest. The market no longer needs him.  It can bounce up with Biden in the White House.  The contest for the Democratic Presidential nomination is far from over.  Biden's lead over Sanders is modest, with close to two-thirds of the delegates yet to be chosen.  Many of the remaining primaries are in Western and Midwestern states, where the demographics may be more favorable to Sanders.  But if Biden can maintain his momentum and secure the nomination, Trump won't be able to count on the stock market for support.

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