Trump stock market underperformed Obama's
Add Axios as your preferred source to
see more of our stories on Google.


U.S. stock markets hit record highs during President Trump's time in office, but mostly underperformed his predecessor.
By the numbers: The stock market selloff that followed the outbreak of the coronavirus pandemic wiped out three and a half years' worth of market gains for Trump. As of March 23, 2020, the S&P 500 had lost 1.5% since Trump's first day in office.
- But thanks to the 70% rally that has taken place since then, the country's 45th president was able to finish his term with a more impressive market record than most modern presidents.
Between the lines: Obama inherited a financial crisis and was thus starting from a much lower level than was Trump, who inherited a bull market. During Obama's first term, both the S&P 500 and Dow Jones Industrial Average had higher percentage gains than they did under Trump, although the Nasdaq rose more during Trump's first term.
- Obama's stock returns were aided greatly by the S&P's massive 40% fall in 2008 that pushed the Fed to drop interest rates to near 0% and Congress to pass what was then the largest stimulus package on record, the $831 billion American Recovery and Reinvestment Act.
- Clinton's dramatic stock market gains were powered in part by an easing interest rate cycle from the Fed, which cut rates to the lowest they had been in 20 years — 4.4% — at the start of his term.

