US Stock Market Returns 13.2% Since Biden Inauguration... Worst Since Jimmy Carter

[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] CNN, citing investment research firm CFRA, reported on the 7th (local time) that since U.S. President Joe Biden took office on January 20 last year (local time), the S&P 500 index's rise rate was only 13.2%, marking the worst performance since President Jimmy Carter (1977?1981).

Analyzing the New York stock market's price returns from inauguration to the midterm elections, it was concluded that President Biden's performance was not favorable.

On the day before the midterm elections, which evaluate the first half of the Biden administration, President Biden marked his 1,022nd day in office.

In Biden's first year in office last year, the S&P 500 index surged 27%, driven by high expectations for economic recovery from COVID-19. However, as inflation worsened, the S&P 500 index fell about 20% this year. In terms of annual returns, this is the worst since the global financial crisis in 2008.

As a result, the stock market performance under the Biden administration also fell below average.

CFRA investigated the S&P 500 index returns from inauguration to the 1,022nd day for 13 presidents since 1953 and reported that President Biden ranked ninth among them. Presidents with worse stock market returns than Biden were George Bush (-21.6%), Jimmy Carter (-2.6%), Richard Nixon (-7.2%), and Lyndon Johnson (9.6%).

During the two presidents before Biden, the stock market surged. After President Barack Obama's inauguration, the S&P 500 index rose 58.5% over 1,022 days, and during President Donald Trump's tenure, it increased by 36.2%.

The reason the New York stock market struggled after Biden's inauguration is that the central bank, the Federal Reserve (Fed), raised benchmark interest rates significantly to combat inflation.

CNN diagnosed that the inflation causing this year's stock market downturn was mostly due to factors beyond Biden's control, such as Russia's invasion of Ukraine, COVID-19-related supply chain issues, and the Fed's delayed response to inflation. However, it also pointed out that some of the causes were excessive stimulus measures by the Biden administration, such as the American Rescue Plan (ARP).

This content was produced with the assistance of AI translation services.