After Trump boasts about rally, Wall Street tanks again

SAN FRANCISCO (Reuters) - Less than 48 hours after U.S. President Donald Trump bragged about his soothing influence on the stock market, Wall Street tanked again.

FILE PHOTO: U.S. President Donald Trump is accompanied by Vice President Mike Pence and industry executives during news conference where the president declared the coronavirus pandemic a national emergency in the Rose Garden of the White House in Washington, U.S., March 13, 2020. REUTERS/Jonathan Ernst

The U.S. stock market’s gains under Trump are rapidly disappearing as the fast-spreading coronavirus pandemic drives fears of a global recession.

The S&P 500 .SPX tumbled 9% on Monday, erasing all of its gains from a furious rebound late on Friday that happened seconds after Trump declared a national emergency to combat the rapidly spreading coronavirus.

Trump has repeatedly boasted about the stock market’s performance during his three years in office, and on Saturday he told reporters:

“I was honored to see that the stock market — you were mostly there with us — set a record in a short period of time — over a 45-minute period that we had the press conference yesterday in the Rose Garden. That was a record. All-time record. I think we should do one of them every day, perhaps. How about every — how about five times a day? We’ll do one five times a day.”

Despite Trump’s optimism about the stock market, Monday’s slump extended the S&P 500’s loss from its peak on Feb 19 to about 27%. Investors dumped stocks after the Federal Reserve’s drastic move on Sunday to cut interest rates to near zero amplified worries over the extent of damage from the pandemic.

Graphic - Trump's Wall St gains disappear:

As the coronavirus spreads fear of a recession, most of the S&P 500’s gains under the Republican president, a major part of his case for reelection in November, have disappeared.

At its February peak, the S&P 500 was up 58% from when Trump unexpectedly beat Democratic rival Hillary Clinton in November 2016. As of Monday, Trump’s stock market was up just 15% from that time. The Dow is now up 14% since Trump was elected.

Reporting by Noel Randewich; editing by Megan Davies and Chizu Nomiyama