Analysis: Markets Have Tanked Since Trump’s Tax Plan Became Law
President Donald Trump promised that his tax cuts would be "rocket fuel for the American economy", but a stock market analysis by The Washington Post shows that no such result has transpired; instead, the markets have experienced an ongoing state of volatility.
“We must cut our taxes, reduce economic burdens and restore America’s competitive edge,” Trump said during a November speech in Missouri. “We’re going to do that, too, and it’s already happening. Look what’s happening with our markets. People get it.”
At that point, the Dow Jones was up 21 percent over the course of his presidency, and it would continue spiking upward for the next few weeks. But Trump promised more.
“These massive tax cuts will be rocket fuel,” he said, “rocket fuel for the American economy.”
To be clear, the stock market is not the only or best indicator of economic health, but it has been one of Trump's favorite indicators since he took up residence in the Oval Office.
So how did the markets respond to Trump's tax cuts?
Between Trump’s inauguration and the signing of the tax cut bill, the Dow, S&P and Nasdaq had increased by 19.9 percent, 15.4 percent and 20.2 percent, respectively. After, through the market’s close on Monday, they had fallen by 1.9 percent, 2.2 percent and 2.7 percent.
At close of market on Monday, each measure was off its 52-week high by at least 9 percent. Before the bill’s signing, none of those indexes had been down more than 3.7 percent off its 52-week high.
Between Trump’s inauguration and the bill signing, the Dow had dropped on 41 percent of days, the S&P on 43 percent and the Nasdaq on 38 percent.