Biden's post-election stock bump tops Trump's
Stocks rose faster in the one month of trading following the 2020 election than in the month of trading that followed the 2016 election.
Between the lines: There are many macro differences between the 2016 and 2020 periods, most notably the pandemic, but both elections took place amid bull markets.
By the numbers:
- Dow Jones: +9.96% in 2020 vs. 7.77% in 2016
- Nasdaq: +11.68% in 2020 vs. 4.83% in 2016.
- S&P 500: +9.79% in 2016 vs. 5.61% in 2016.
President Trump said during this year's first debate that "If [Biden] is elected, the stock market will crash."
- Not only was he wrong, but the market has responded more strongly than it did after Trump's election.
The bottom line: The stock market's performance is not necessarily tied to conditions in the so-called real economy, nor is it necessarily correlated to whoever is measuring the Oval Office drapes.