Tuberville, Alabama lawmakers blame market unrest on ‘Kamala Crash’: Why did the stock market drop?
A massive sell-off on Wall Street and recession fears inspired several social media posts from Alabama lawmakers blaming President Joe Biden, and Vice President Kamala Harris, for what they say may be the beginning of an economic nosedive.
On Monday, the Dow Jones lost more than 900 points by lunchtime, sparked by global fears of economic instability.
Overnight investors plunged the market in Japan to its worst day in decades, sending some of the world’s biggest technology companies into tailspins.
Alabama U.S. Sen. Tommy Tuberville made hay with the news, using it once again to campaign for former President Donald Trump, the Republican presidential nominee.
U.S. Rep. Gary Palmer called the stock market plunge the “Kamala Crash.”
U.S. Rep. Barry Moore had a similar message:
Trump on his Truth Social account, also assigned blame in several posts. “Stock markets are crashing, jobs numbers are terrible, we are heading to World War III, and we have two of the most incompetent ‘leaders’ in history. This is not good.” Another read: “TRUMP CASH vs. KAMALA CRASH!”
The market turmoil follows weak jobs numbers last week, along with the Federal Reserve declining to cut interest rates.
In addition, according to the Associated Press, investors are listening to warnings that Nvidia and other Big Tech stocks have gotten too expensive, and that massive spending on AI might not turn into profits for a while.
The Bank of Japan has started raising rates, which upended Japan’s markets.
On Friday, the Nasdaq composite went into a correction, which is a 10% decline from its most recent high. On Monday, the Nikkei plunged more than 12%, its worst drop since 1987.
Oil and other commodities prices fell as well.
Tech stocks known as the “Magnificent Seven ” underwhelmed investors in their latest earnings reports, and investors are worried about potential profit gains.
Apple fell 5% Monday after Warren Buffett’s Berkshire Hathaway disclosed that it had slashed its ownership stake in the iPhone maker. Nvidia lost more than $238 billion in market value Thursday and Friday and the stock was down another 7% Monday.
The Associated Press contributed to this report.