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.
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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)
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“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.