But the overdraft caused the stock prices of companies that represent innovation and the future to plummet as well; Amazon is down more than 30 percent since the start of the year, while Alphabet, Google’s parent company, is down nearly 20 percent, as investors rethink the true value of those companies.
Practically no stock has been saved from losses. Hill said the market downturn “has gone on and on, and it’s frustrating.”
Perhaps no one understood that emotional symbolism of the market better than Mr. Trump.
“The reason our stock market is so successful is because of me,” Mr Trump said in November 2017 One of several statements in which he boasted of rising stock prices or publicly pressured the Federal Reserve to further cut interest rates in order to revive the economy.
Early in the pandemic, in April 2020 — with stores, offices and churches closed, children stranded at home trying to go to school remotely, and mortuaries running out of space for virus victims — Mr Trump tweeted That the US had “the largest increase in the stock market since 1974”.
While the majority of Americans have some money invested in the stock market, it remains the rich person’s game. According to an analysis by New York University economics professor Edward Wolf, the top 5 percent of American net worth owners own 72 percent of all stocks.
But the symbolic value of the stock market is important. “It’s the only story that makes the news every night,” said Richard Sella, professor emeritus of economics at New York University’s Stern School of Business.
Is the market going up or down? Do we win or lose today, this week, this year, this presidency?
The University of Michigan Consumer Sentiment Index fell on Friday less than expected, a drop that some economists attribute in part to stock market losses. Ian Shepherdson, chief US economist at Pantheon Macro Economics, noted that the index is now 13 points below the low when Covid first hit. Such deep pessimism “suggests that people have short memories,” Mr. Shepherdson wrote in a research note.
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