The US presidents indirectly and marginally affect the stock market. They are responsible for law enforcement. So, he/she may also affect the market and business. However, it gets said that the republicans are not much more beneficial for the stock market than the democrats. Presidents that prove to get favorable to the stock market, have more chances of getting re-elected. Let us understand the stock market performance of different presidents. Let us know more detail about ‘Stock Market Performance By President’.
Stock Market Performance By President:
The stock market return was the most in the tenure of William J. Clinton. It was 210%. The stock market performed average during the presidency of Barack Obama. The worst stock market return was in the case of George W. Bush. It was -40%.
Stock Market Performance By John F. Kennedy
His tenure as the U.S. President was from 1961 to 1963. The worst crash in history, The Wall Street Crash, occurred in 1929. After that, the stock market started growing. However, to expand the economic growth, he decided to cut the income and corporate taxes.
Under his rule, the economy grew at an average rate of 5.5% per year while inflation was only 1%. S&P 500 Price Change was 44.3% at that time. The stock market experienced a 3% drop within a day after the assassination of John F. Kennedy. It was the highest of all first-day crises.
Stock Market Performance By George W. Bush
The economy suffered a lot in his tenure. At the end of his second term, the economy faced a mortgage crisis, recession, and a few bankruptcies. Talking about the stalk market performance, GDP growth was 14.62%, but NASDAQ lost 44.80% at the end of his Cumulative Term 2. So, the stock market performance was -5.6% per annum.
The key events that took place under his presidency were: The Great Recession, The 9/11 Attack, and The Gulf War. The War In Iraq was more controversial and expensive. So, the economy slowed down at the end of his tenure. It is an example of uncertainty in the economy.
Stock Market Performance by Barack Obama
The economy was already suffering when Obama’s term as president started. However, it recovered impressively during his presidency. DJIA increased from 10,428.05 (in 2009) to 24,719.22 (in 2017). The consumer discretionary sector performed the best by returning 20% (annualized).
Other sectors that performed well under his presidency were Energy, IT, beauty store chains, shopping malls, and Netflix. Annualized S&P returns were +13.8%. However, S&P returns were already up 77.4% during his first term. Obama’s performance was better than that of Trump.
Stock Market Performance by Donald Trump
Trump’s tenure was beneficial for the investors, and the unemployment rate decreased below 4%. Conflicts over trade with China and the rise of the pandemic were the key events that occurred during his tenure. S&P 500 was 34% before the lockdown, and the stocks went down afterward. They took more time to recover.
Market performance was 13.7% per year during his period. He was the winner in the case of the stock market after Obama. In January 2021, the S&P 500 grew by 67% on its last day. Dow’s Annualized return was 11.8% per year during his 4-year long term. It was good but not better than that of presidents Barack Obama and Bill Clinton.
Stock Market Performance by Joe Biden
Stocks fell till July 2022, since Biden became the President, though the economy was strong till 2021. However, the market saw a 9.5% increase during the first 100 days after he joined as the president. Market performance has been 8.9% every year till now, and S&P 500 price change is 16.2%. NASDAQ gain is currently -3.61%.
Biden took office after Trump when the mass vaccination campaign against the pandemic was going on. Rescue plans for the same cause inflation, and it has been the worst since 1981. He has passed other plans to decrease the costs of living, unemployment supplements, and more.
Conclusion
The performance of the stock market gets credited to the president on-chair. When a president does anything to help the stock market, the effects get visible after he/she gets out of office. This article shows how the stock market was at its best during William J. Clinton’s tenure and the worst during that of George W. Bush. Different monetary policies affect the stock market.
Frequently Asked Questions
- How Much Do Presidents Get Paid?
The US Presidents get paid $400,000 per year.
- What Is S&P 500?
It stands for Standard and Poor’s index. It provides the statistics of how 500 large companies perform in the stock market according to NYSE and NASDAQ.
- Does the Stock Market Get Affected After Presidential Elections?
The stock market gets slower after the elections. However, it may get higher if a new party comes into power or the same party or president continues.
