The stock market skidded Tuesday toward its worst loss in nearly a year after a disappointing report on inflation, days after President Biden appeared optimistic about the economy.
On Saturday, Biden tweeted the “good news” to start the weekend, saying: “The stock market going strong is a sign of confidence in America’s economy.”
The S&P 500 was down 1.9% in late trading as traders delayed their forecasts for when the Federal Reserve will deliver the cuts to interest rates they crave so much.
BIDEN LASHES OUT AT REPORTERS ASKING ABOUT AGE CONCERNS AFTER SPECIAL COUNSEL REPORT
President Biden said over the weekend that the stock market was “going strong” as Wall Street showed declines Tuesday. (Photo by Kevin Dietsch/Getty Images)
The hotter-than-expected inflation report may have put the final nail into hopes that the first cut could arrive in March. It also pushed many forecasts past May into June, according to data from CME Group.
The Dow Jones Industrial Average dropped 731 points, or 1.9%, from its record set a day earlier.
The Nasdaq composite, which has been flirting with its all-time high set in 2021, was down 2.2%, with an hour remaining in trading.
Despite the grim news on Wall Street, Biden said the economy was in a full-swing recovery.
Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, on Oct. 26, 2020. (REUTERS/Mike Segar/File Photo)
CLICK HERE TO GET THE FOX NEWS APP
“Today’s data shows that wage growth has been the strongest of any economic recovery in 50 years – and inflation declined two thirds from its peak,” he posted on X. “I’ll continue to fight to lower costs for middle class families and stand in the way of Congressional Republicans who disagree.”
The Associated Press contributed to this report.
Former House Speaker Newt Gingrich commends the House of Representative's investigations into Hunter Biden on "Hannity," saying their work will Read more
The Biden-Harris campaign's communications director argued that "a brick wall of MAGA extremism" has contributed to Americans struggling financially and Read more
Families of U.S. citizens being wrongfully imprisoned in China, are pleading with President Biden to come up with a "real Read more
An internal State Department dissent memo that was reportedly leaked to the press accused President Biden of "spreading misinformation" about Read more