Fact check: Buttigieg says stock market set records under Biden but not Trump
The stock market has been on a roll, and politicians are vying to take credit for it.
In December and January, the S&P 500, a broad market gauge, and the Dow Jones Industrial Average both closed at all-time highs for the first time in about two years.
Even though former President Donald Trump has been out of office for more than three years, he claimed credit in a Jan. 29, all-caps post on his social media platform, Truth Social, saying that his polling advantage over Biden is driving the stock market to new heights because investors are projecting he will win.
On ABC's "This Week," Transportation Secretary Pete Buttigieg countered that President Joe Biden, not Trump, deserves credit for the stock market rise.
"You know, most of us don’t think that the stock market is an indicator of the economy, but if you do, because I know the former president does, it hit an all-time high under President Biden and not under President Trump," Buttigieg said March 10.
However, Buttigieg was wrong about Trump’s tenure. Trump saw stock market records set during his term, too.
The stock market can be driven by investor perceptions and crowd psychology rather than by economic data alone, which means that caution is necessary when using it to gauge the broader economy. Still, it usually has some connection to economic reality, and at the very least, many Americans have investments in the stock market, so the market’s health can influence economic perceptions.
The S&P 500 tracks 500 of the largest publicly traded companies in the United States. The value rises or falls based on the latest prices for those 500 stocks during weekday trading sessions. Over time, this and other stock metrics tend to rise, although not without periods in which the metric falls.
The S&P 500 regularly reached record highs during Trump’s presidency, even after the onset of the coronavirus pandemic. The market gauge hit seven peaks during Trump’s presidency. Leading up to these peaks, the S&P 500 often set records; after the peaks, the level fell, until stocks rebounded and hit the next peak.In Trump’s case, the final peak of his tenure saw the value of the S&P 500 at about 3,800, after starting his term at a little more than 2,200.
The pattern for the Dow Jones Industrial Average was similar, with several new peaks under Trump.
Under Biden, the S&P 500 has also hit new highs.
The metric experienced several new peaks in Biden’s first year in office, 2021, before declining for most of 2022. The market recovered in 2023 — enough to blow past its previous record and set new ones into early 2024.
Currently, the S&P 500 is hovering around 5,100, which, despite the year-long slide in 2022, is well above what it was at the end of Trump’s term. That’s not surprising for the S&P 500: Barring an economic calamity, most presidents see higher stock prices than their predecessor did.
"The stock market hit its highest point ever under President Biden, higher than at any point during the previous administration," Sean Manning, a Transportation Department spokesman, told PolitiFact.
PolitiFact ruling
Buttigieg said the stock market "hit an all-time high under President Biden and not under President Trump."
The S&P 500 recently hit record highs under Biden, as it did several times in 2021.
But the S&P 500 also set multiple records during Trump’s presidency, even after the coronavirus pandemic hit.
We rate the statement Mostly False.
