Stock market slide muddles Trump’s economic message days before 2020 election

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Markets again opened down significantly on Wednesday.

“This election is a choice between a Trump super recovery and a Biden — in my opinion, this is going to happen; I hate to say it — depression,” Trump told a crowd in Ohio earlier this week. “You’re going to have a depression. And your 401s. Does anybody have a 401? Throw them away. They’re not going to be worth — It’s a choice between a boom and a lockdown.”

The federal jobless rate has come down substantially to 7.8 percent. White House officials frequently point out that several key sectors -- including housing; automobiles; and manufacturing -- show signs of rapid growth that could power the U.S. economic recovery. Analysts expect Thursday could show a quarterly jump of more than 25 percent increase in America’s Gross Domestic Product after the economy sharply contracted in the spring.

On Wednesday, LaVorgna pinned the stock market decline on an increase in coronavirus cases in Europe and the impact that may have on the global economy.“Europe is worse, and that spillover is happening, but the difference is in the US the data looks a lot better than it has in Europe. We’re not going to lock down like they are in Europe," LaVorgna said. “Europe is leading global stock markets lower.

 

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