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The “Trump bump” is no more.
The Dow Jones industrial average‘s decline on Monday officially marked the erasure of all gains the index made following President Donald Trump’s election victory on November 8, 2016.
The Dow shed as much as 5% – or 960 points – on Monday, slipping to an intraday low of 18,213.65. That marked its first foray below the November 7, 2016 close of 18,259.60.
US stocks have sold off in recent weeks, ending the longest-ever bull market run in history, as the coronavirus pandemic has expanded. As the outbreak continues to spread, investor concern over slow global growth and major economic impact of decreased activity has grown, sending stocks down and boosting so-called safe haven assets such as US Treasury bonds and gold.
At this point, the Dow has declined as much as 38% below its February all-time high, putting it solidly in bear market territory. Last week, the index erased all of the gains it made during Trump’s presidency, falling below it’s closing level at Trump’s inauguration.
There are also increasing concerns that the coronavirus crisis will push the US into a recession, or worse, as the administration races to approve a stimulus package to address the pandemic.
