US stock markets closed down sharply again on Thursday, with the Dow Jones Industrial Average dropping 2.13% and the S&P 500 index down 1.96%. It’s the second day of steep drops for US stocks, and the worst start to a trading quarter in nearly two years.
The steep selloff comes just weeks ahead of the crucial midterm elections, and a fair question is “Will the stock sell-off will impact how people vote?” The November midterms are considered a referendum on Donald Trump’s presidency, and polls show his popularity remains at record lows.
The market’s near-steady rise since Trump took office has been one thing that Republicans who don’t like his governing style often point to as a reason to support him anyway. Trump himself takes credit for the rise, and has told reporters stock values have been strong because he’s “great with money.” His tax cut and pledges to cut business regulation also pulled individual investors back into markets.
Although this week’s two-day drops are steep, US stock investors are still a lot better off than they were before Trump took office. The afternoon before the election, November 7, the DJIA closed at 18,259.60 and the S&P 500 index at 2,131.52. Since then, the Dow has risen 6,793.37 points, and the S&P 500 over 600 points.