Markets around the world, including in the U.S., tanked on Monday as investors began openly expressing concerns about a possible U.S. economic recession.
As they had on Friday, global markets were severely in the red on Monday. The Dow opened down more than 1,000 points and as of mid-morning hovers about -2.6% overall. The tech-heavy Nasdaq is down over 560 points or 3.36%.
‘Four years ago today, Trump claimed the stock market would ‘crash’ if Joe Biden was elected.’
The Asian markets, many of which are about 12 hours ahead of the American markets, suffered even worse losses on Monday. The Nikkei 225 in Japan tumbled 12.4% — more than 4,450 points — its largest single-day loss in history. The second largest was “Black Monday” in 1987.
“That was a crash. It smelled like 1987,” said Neil Newman, head of strategy at Astris Advisory in Tokyo, according to CNN.
On Monday, Taiwan’s Taiex likewise fell 8.4% and South Korea’s Kospi 8.8%.
These catastrophic numbers have intensified talks about a looming recession in the U.S. Even leftwing outlets like the Daily Beast have acknowledged the possibility.
“To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become,” said Stephen Innes of SPI Asset Management, according to ABC News. “The real question now looms: Can the typical market reflex to sell volatility or buy the market dip prevail over the deep-seated anxiety brought on by this sudden and sharp recession scare?”
The Federal Reserve will now almost assuredly cut interest rates next month to stabilize the volatile markets.
For now, economists are blaming the global market turmoil on the dismal jobs report the U.S. Department of Labor released on Friday. So-called experts had anticipated a report showing that the policies that Biden and Harris have affectionally called “Bidenomics” had created 175,000 jobs last month, but the real number was much lower, just 114,000, causing the unemployment rate to jump to 4.3%, the highest rate since October 2021 and nearly a full point higher than it was at the beginning of the year.
As recently as May, an account touting the supposed accomplishments of Vice President Kamala Harris celebrated the soaring stock market and took aim at former President Donald Trump’s skepticism about a Biden-Harris administration’s ability to address economic issues.
“Four years ago today, Trump claimed the stock market would ‘crash’ if Joe Biden was elected (The stock market has reached the highest levels ever recorded in history under President Biden),” Kamala HQ tweeted on May 24.
Trump certainly has his doubts that Biden and Harris are up to the task, dubbing the market tumble on Monday the “KAMALA CRASH.”
“Of course there is a massive market downturn. Kamala is even worse than Crooked Joe. Markets will NEVER accept the Radical Left Lunatic that DESTROYED San Francisco and California, as a whole. Next move, THE GREAT DEPRESSION OF 2024! You can’t play games with MARKETS. KAMALA CRASH!!!” Trump wrote on Truth Social.
Harris for President spokesperson James Singer, in turn, pointed the finger at Trump for the abysmal jobs report. “Donald Trump failed Americans as president, costing our economy millions of jobs, and bringing us to the brink of recession,” Singer said.
“We’ve made significant progress, but Vice President Harris knows there’s more work to do to lower costs for families.”
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