Fear of US recession Drives Global Market Turmoil
By Casey Harper | The Center Square
(Worthy News) – The U.S. stock market took a major dive Monday as Japan saw its worst stock market day since 1987, raising fears of a recession and drawing fresh criticism for President Joe Biden and Vice President Kamala Harris.
As of Monday morning, the Dow had dropped 900 points and the Nasdaq a whopping 4%, which experts say is fueled by a fear of a coming recession.
Federal jobs data released on Friday showed far fewer jobs were created than expected.
Overseas conflicts between Russia and Ukraine, possibly imminent all-out war between Iran and Israel and the ongoing threat of a Chinese invasion of Taiwan are also constant stability concerns for global markets.
Former President Donald Trump released a flurry of posts blaming Harris, the presumptive Democratic nominee, for the market downturn, labeling it the “Kamala crash.”
“This is a preview of the world markets without Donald J. Trump in the White House. None of this happens if Trump is in. Kamala and the markets don’t go together,” Trump said in a post online Monday morning. “She’ll destroy the markets. She’s in power now and look at what is happening. One week of the fake media saying better polls and you get a market crash.”
In 2020, Trump predicted that if Biden were to win reelection, the stock market would “crash.”
“Of course there is a massive market downturn,” Trump said. “Kamala is even worse than Crooked Joe. Markets will NEVER accept the Radical Left Lunatic that DESTROYED San Francisco and California, as a whole. Next move, THE GREAT DEPRESSION OF 2024! You can’t play games with MARKETS. KAMALA CRASH!!!”
U.S. Sen. J.D. Vance, R-Ohio, Trump’s pick for Vice President, warned that the economic situation could get much worse if it is not handled well.
“This moment could set off a real economic calamity around the globe,” Vance wrote no X, formerly known as Twitter. “It requires steady leadership–the kind President Trump delivered for four years. Kamala Harris is too afraid to answer media questions and cannot lead us in these troubled times.”
Renowned investor Warren Buffett of Berkshire Hathaway said over the weekend that he had sold over half his stock in Apple, which subsequently saw a 5% decrease in its stock price.
“He is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills,” Billionaire Elon Musk wrote on X Sunday in response to the news. “The Fed needs to drop rates. They have been foolish not to have done so already.”
On Aug. 1, 2023, Fitch Ratings downgraded the U.S. Long-Term Foreign Currency Issuer Default Rating to AA+ from AAA.
At that time, Fitch Ratings stated the downgrade was due to the “expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”