On Friday, the Dow Jones Industrial Average fell more than 700 points to 29,371, a 2.4 percent decrease. The downturn is the second time this year that stocks have gone below when President Joe Biden (D) took office in January 2021, signaling a stagnating economy.
The S&P 500 dropped to 3,667 points, down 2.4 percent. The decrease is once again the second time this year that it fell below the 3,799 level on Biden's inauguration day, according to Breitbart.
Similarly, The Nasdaq Composite plunged 2.4 percent to 10,808 compared to 13,197 on January 20, 2021. Since that date, it has fallen by over 18 percent.
Gains in the stock market under President Biden's watch have been all but erased as even the blue-chip index, which thrived during the covid-19 pandemic, comprised of companies like Apple, Microsoft, Tesla, and Berkshire Hathaway has taken a hit of 21 percent since the start of the year, according to CNN Business.
The most recent downturn is being driven by the interest rate hike of 0.75 percent introduced on Wednesday by Federal Reserve chair Jerome Powell.
The interest rate hike is the third time in a row that rates have increased by three-fourths of a percentage as the central banker vows to “keep at” the battle against inflation, per Reuters.
“Reducing inflation is likely to require a sustained period of below trend growth,” Powell said in Wednesday’s press conference announcing the increase. “And, it will very likely [mean] some softening of labor market conditions.”
“Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the long run,” Powell said, as reported by CNBC. “We will keep at it until we’re confident the job is done.”
As the Democrats continued to pump money into the economy with the $740 billion so-called Inflation Reduction Act, the $1.2 trillion infrastructure bill, and the $1.9 trillion “American Rescue Plan” the economy has continued to suffer as inflation stifles American prosperity.
The stock market has begun to take notice of the terrible economic conditions after the US officially entered a recession in July and the global economy continues to tank.
Instead of trying to fix the issue, President Biden continued to burden American taxpayers with an inflated currency and increased national debt. Hopefully, Republicans can take back Congress this November and stop the Democrats' reckless spending.
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