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As Joe Biden prepares to demit office, here's how US stocks performed under him

By, New Delhi
Jan 18, 2025 04:16 PM IST

Joe Biden was sworn in as US President in January 2021.

Joe Biden is ending his term as US President with S&P 500 up over 55% since January 2021, when he took office, according to a recent report.

US President Joe Biden gestures as he delivers his farewell address to the nation from the Oval Office of the White House in Washington, DC, on January 15, 2025. (Photo by Mandel NGAN / POOL / AFP)
US President Joe Biden gestures as he delivers his farewell address to the nation from the Oval Office of the White House in Washington, DC, on January 15, 2025. (Photo by Mandel NGAN / POOL / AFP)

Over the same period, the Dow Jones Industrial Average advanced more than 39% and Nasdaq Composite jumped nearly 46%, MarketWatch's report noted citing Dow Jones Market data.

However, the website also said that under Biden, both Dow Jones and Nasdaq recorded their worst returns since the second term (2005-09) of George W Bush.

Biden also oversaw S&P 500 logging its smallest gains since the second administration (2013-17) of Barack Obama, it added.

The beginning of the Democrat's term coincided with an escalation in the Covid-19 pandemic and the resultant economic downturn. By the end of the year (2021), as the global economy began recovering from the pandemic, the major American stocks posted double-digit returns.

In 2022, Wall Street saw its worst year since the 2008-09 financial crisis amid the Russia-Ukraine war and the US economy, too, grappled with soaring inflation and higher interest rates.

According to the report, in 2023 and 2024, a “tech-fueled” economic recovery and artificial intelligence "frenzy” propelled US stocks to historic levels, with S&P 500 scoring back-to-back double-digit annual gains by the end of 2024.

Expert David Russell attributed this to an “explosive surge” in cyclical sectors of the economy, and Biden's landmark Inflation Reduction Act of 2022.

“The Inflation Act really spurred industrial activities that in many ways triggered higher interest rates and the bear market. However, the artificial intelligence thing had nothing to do with Biden as it had been building for years before coming to fruition,” Russell stated.

On Friday, the final trading day of the incumbent administration, the US stocks finished higher. The three major benchmarks posted weekly gains amid a retreat in Treasury yields.

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