Who Had the Better Stock Market? | Global News Avenue

Stocks rose on Friday, ending a strong rally under President Joe Biden and putting stocks near record highs ahead of Monday’s inauguration of Donald Trump.

S&P 500 rises 1% on fridaySince Joe Biden’s inauguration on January 20, 2021, the S&P 500 is up 58%. The S&P 500’s performance during Biden’s presidency fell short of the nearly 70% return (not including dividends) during Trump’s first term. it also falls short of More than 80% return During Obama’s first term, stocks rebounded from the bear market of the Great Recession.

Biden’s inauguration comes as stocks are surging from coronavirus lows, buoyed by stimulus checks, an influx of retail investors and a surge in profits from Big Tech companies. The rally Biden inherited ended when supply chain disruptions, soaring oil prices and a flood of money supplies led to the worst bout of U.S. inflation since the 1970s. The Fed’s sharp interest rate hikes have plunged the stock market into a bear market, with the S&P 500 down about a quarter. ChatGPT launched in late 2022, sparking an artificial intelligence craze that has driven stocks higher ever since.

Likewise, Biden’s presidency has been a good time for the blue-chip Dow Jones Industrial Average, but not as good as Trump’s first term and Obama’s two terms. The Dow rose more than 56% during the Trump administration, and nearly 150% during the Obama administration. For Wall Street, however, Biden’s time in the White House has been much better than George W. Bush’s tenure from 2001 to 2009, when the Dow Jones lost about a quarter.

On an annualized basis, Biden’s Dow performance is slightly below the 50-year average but above the average for Democratic presidents in the 20th and 21st centuries. The Dow’s performance under Biden is its worst in a single president since Jimmy Carter.

Granted, the president has very little control over the stock market. Their comments can brighten or darken market sentiment, and their policies can help or hurt certain industries. But Wall Street and its major indexes follow the ebb and flow of the U.S. and global economies, and the president’s imprint before leaving office is rarely visible.