did the stock market crash under biden

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Did the stock market crash under Biden? This article answers that question directly and with evidence. It defines what is commonly meant by a "stock market crash," summarizes major U.S. index moves during President Joe Biden’s term (beginning January 20, 2021), walks through notable market episodes, examines causes and metrics, and places political claims in context. As of the timeframe covered here (Jan 20, 2021 through Dec 31, 2023), the U.S. market experienced sharp declines and a documented bear period in 2022, but not a single-day, exchange-triggering "crash" of the type seen in early 2020; whether one calls the 2022 downturn a "crash" depends on the definition used.

Note on sources and dates: As of 2022, CNN published analysis of market performance under President Biden (see Sources). As of 2024, political claims about a "market crash" were circulated by some congressional communications and media excerpts. As of 2020, the Wikipedia page on the 2020 stock market crash documents the sharp COVID-era sell-off that preceded the Biden presidency and provides necessary background.

Keyword placement: The phrase "did the stock market crash under biden" appears throughout this article to directly address search intent and ensure clarity for readers seeking this exact query.

Background and scope

This article treats the query "did the stock market crash under biden" in the conventional financial sense: whether U.S. equity markets experienced a major, sustained collapse or an intra-day event broadly classified as a "crash" during President Joe Biden’s term. Important definitions and scope:

• "Crash": commonly refers to a very rapid, severe decline in market prices, often measured as a peak-to-trough fall exceeding 20–30% occurring in days to weeks, sometimes accompanied by exchange circuit-breakers, sharp volume spikes, or systemic market dysfunction. Crashes are typically sudden and concentrated. The February–March 2020 COVID sell-off, for example, included multi-day collapses and repeated record drops in very short order.

• "Correction": a decline of 10% or more from a recent peak, usually shorter and less severe than a bear market.

• "Bear market": a sustained decline of 20% or more from a recent peak, measured peak-to-trough, regardless of whether the fall was concentrated in days or spread over months.

Timeframe covered: this article focuses on market activity from the start of the Biden presidency on January 20, 2021 through December 31, 2023. The pre-inauguration COVID-19 crash of February–March 2020 is discussed because it set the starting conditions for 2021 market behavior and is often cited in comparisons.

Sources used here include contemporary reporting and analyses (notably CNN’s 2022 assessment of early Biden-era market performance), the Wikipedia entry on the 2020 crash for background context, and public market-index statistics for 2021–2023. All factual claims that reference external reporting include the reporting year or the source name for context.

Overview / Summary of market performance under Biden

Short answer to the primary question: did the stock market crash under biden? By most standard definitions, the U.S. stock market did not experience a sudden, single-event crash during the Biden presidency between Jan 20, 2021 and Dec 31, 2023 comparable to the February–March 2020 COVID crash. However, the market did experience a pronounced bear market in 2022 with large peak-to-trough declines—large enough to be characterized as a bear market and widely discussed as a major downturn.

Key summary points (Jan 20, 2021–Dec 31, 2023):

• 2021: Strong recovery and index gains as economic activity resumed and fiscal support persisted. Major indices posted sizable gains in 2021.

• 2022: A significant downturn driven largely by rising inflation and rapid Federal Reserve tightening. The S&P 500 fell roughly in the high teens to near 20% for the year; the Nasdaq experienced larger declines, consistent with a tech-led sell-off. This movement constituted a bear market by the 20% threshold.

• 2023: A rebound in many indices as inflation pressures eased and markets adjusted to a new policy environment, erasing some but not all prior losses.

In public discourse, the terms "crash," "correction," and "bear market" have been used interchangeably by commentators and political actors. Objective market metrics (peak-to-trough percent moves, duration, volatility indicators) are the standard way to classify whether an outcome is a crash or a different type of decline. Readers seeking the exact index figures used in this article can cross-check official index providers and exchange records.

Timeline of notable market events during the Biden presidency

Below is a concise chronology of major market phases and episodes within the covered timeframe. For each item, the primary indices referenced are the S&P 500 (broad large-cap U.S. equities), the NASDAQ Composite (technology-heavy), and the Dow Jones Industrial Average (select large-cap industrials).

2021 — Recovery and gains

• Context: Markets entered 2021 following the March–April 2020 COVID drawdown and strong policy support (fiscal stimulus, loose monetary policy).

• Market behavior: Major indices rallied through 2021. The S&P 500 posted double-digit gains for the year as reopening and earnings growth supported prices.

• Classification: Not a crash; the market was in recovery/expansion.

2022 — Inflation, Fed tightening, and the bear market

• Timeline: Inflation accelerated in late 2021 and into 2022. The Federal Reserve began signaling and then executing rate hikes to combat inflation. Supply-chain disruptions and geopolitical risk (energy and commodity price implications) contributed to market stress.

• Market behavior: The S&P 500 declined substantially in 2022 from its 2021-highs, with the year marked by elevated volatility and several steep down months. The NASDAQ, with a high concentration of growth-oriented technology stocks, saw larger peak-to-trough losses.

• Classification: Many market observers and index providers described 2022 as a bear market year for U.S. equities. Whether to label it a "crash" depends on the rapidity and single-event nature; 2022’s decline was significant and sustained but not a one- or two-day free-fall of the sort sometimes called a crash.

2023 — Recovery and narrowing leadership

• Timeline: As the Fed’s rate hikes progressed and inflation indicators began to show signs of moderation, markets staged a recovery in 2023.

• Market behavior: Indices regained a substantial portion of 2022 losses, though leadership was concentrated in certain sectors. Volatility persisted but was lower than 2022’s peak.

• Classification: Recovery following a bear-period; not a crash event.

Notable downturns and whether they qualify as a "crash"

To address "did the stock market crash under biden", we should compare specific downturns to common crash definitions.

The February–March 2020 COVID crash (pre-Biden)

• Peak-to-trough: The S&P 500 fell approximately one-third (around 30–34%) from its February 2020 peak to the March 2020 trough in a matter of weeks.

• Nature: Rapid, severe, and accompanied by extraordinary policy responses. This episode is the canonical modern example of a "crash" within the recent decade.

• Relevance: This event occurred before Biden took office on Jan 20, 2021, but it shaped starting market levels, policy responses, and investor expectations entering the Biden term.

The 2022 downturn (during Biden)

• Peak-to-trough: From late 2021 highs into the late-2022 trough, the S&P 500’s peak-to-trough decline crossed the 20% threshold used to define a bear market. The NASDAQ experienced larger declines (exceeding 30% from peak to trough at times), largely driven by multiple rate-hike rounds and valuation compression in growth-heavy sectors.

• Rapidness: The 2022 fall unfolded over months rather than a few trading days. It included sharp down months and intra-day volatility but did not mirror the abrupt multi-week crash dynamics of 2020.

• Classification: Most market-data definitions would classify 2022 for U.S. equities as a bear market. Whether to call it a "crash" is a semantic choice; many neutral analysts call it a bear market caused by monetary-policy tightening and inflationary shocks rather than a classical crash.

Single-day events

• During the Biden term through 2023 there were days with large percentage moves, including some of the largest single-day declines and rebounds since the pandemic era; nevertheless, none matched the concentrated panic breadth and systemic disorder of March 2020. Circuit-breaker halts are rare and were not a defining feature during 2021–2023.

Causes and contributing factors

Understanding why markets declined or rallied is essential to determine whether a move represents a crash or a policy-driven bear market. Key drivers during the period covered include:

• COVID-19 pandemic and economic shutdowns: The 2020 crash was a pandemic shock. Although the worst of the 2020 crash predated the Biden presidency, pandemic-related risks continued to influence supply chains and demand patterns into 2021 and 2022.

• Inflation surge: Persistent and higher-than-expected inflation in 2021–2022 prompted market repricing of expected interest rates and corporate cash flows.

• Federal Reserve monetary tightening: In response to inflation, the Fed moved from an accommodative stance toward active rate hiking and balance-sheet normalization in 2022. Markets price future rate paths; rapid tightening increases discount rates and reduces valuations, particularly for long-duration growth stocks.

• Fiscal policy and supply shocks: Large fiscal stimulus in 2020–2021 supported demand; supply constraints (shipping, semiconductors, energy) pushed prices higher in some sectors, feeding inflation and volatility.

• Geopolitical and commodity shocks: Events such as geopolitical tensions can affect energy prices and risk sentiment. (This article avoids political or war-related commentary beyond market impact.)

• Market internals: Concentration of index gains in a handful of large-cap technology names amplified drawdowns when those names corrected. Liquidity dynamics and investor positioning (leveraged ETFs, retail trading flows) also affected volatility.

Market indicators and metrics used to evaluate a crash

Analysts use several quantitative measures to judge whether a market event qualifies as a crash:

• Peak-to-trough percent decline: A fall of 20% or more is typically labeled a bear market; 10%–20% is a correction; declines exceeding 30% within days/weeks are often labeled crashes.

• Duration: How long it takes from peak to trough and from trough to recovery.

• Volatility metrics: The VIX (CBOE Volatility Index) spikes during sudden panics; multi-standard-deviation moves in VIX are indicative of crash-like stress.

• Trading volume and liquidity measures: Extreme volume and liquidity evaporation can accompany crashes.

• Circuit-breaker triggers: Exchange halts due to precipitous drops are a hallmark of some historical crashes.

• Breadth indicators: The proportion of stocks participating in a decline (index concentration vs. broad sell-off) matters—crashes often show extremely poor breadth.

Applying these metrics to the 2022 episode: peak-to-trough declines exceeded the bear-market threshold for major indices; volatility rose substantially; however, the decline was spread over months rather than a compressed multi-day shock. Hence many analysts characterized it as a bear market rather than an immediate "crash."

Sectoral performance and winners/losers

Market declines and recoveries were uneven across sectors during the Biden presidency timeframe.

• Technology: Highly sensitive to higher discount rates because of long-duration expected cash flows. Tech-heavy indices and small-cap growth segments experienced larger drawdowns in 2022 and participated strongly in the 2023 rebound when conditions eased.

• Energy and commodities: These sectors often outperformed when commodity prices rose due to supply constraints or geopolitical risk. Energy stocks saw relative strength in 2022 compared with growth sectors.

• Financials: Bank and financial-stock performance reflected interest-rate expectations—rising rates can help net interest margins but also raise credit-risk concerns in some scenarios.

• Consumer staples and utilities: Defensive sectors tended to outperform during peak market stress.

Sector concentration also affected headline index performance. In 2021, a small number of megacap stocks drove a large portion of index gains; when those names fell in 2022, headline indices showed pronounced losses even as other sectors were less deeply affected.

Economic impact and real-economy consequences

Stock-market declines can have real-economy effects, but the transmission is complex and depends on the nature of the decline.

• Wealth effect: Declines in equity portfolios and retirement accounts can reduce household wealth and potentially spending, but the magnitude depends on household exposure to equities.

• Business investment: Prolonged market stress and higher borrowing costs can reduce business investment.

• Employment and GDP: A financial-market event that leads to tighter credit or significant wealth losses can contribute to slowing GDP and employment; however, the 2022 bear market coincided with robust labor-market metrics and did not immediately cause a systemic financial collapse.

• Bank and financial stability: Sharp market selloffs can stress leveraged positions and liquidity providers; regulators and central banks watch these channels closely.

In short, the 2022 bear market had measurable wealth and confidence effects but did not cause systemic market dysfunction or a broadly recognized financial-system collapse during the covered timeframe.

Political discourse and claims about a "market crash"

Public and political narratives often simplify technical market outcomes for messaging. The question "did the stock market crash under biden" has been used in partisan communications and headlines.

• Example of partisan claim: As of 2024, some congressional communications reposted media excerpts characterizing market outcomes as a "crash" under the Biden administration. These communications used political framing to attribute market stress to administration policies.

• Media analysis: As of 2022, outlets such as CNN analyzed Biden-era market performance and compared it with other presidencies, noting periods of underperformance relative to benchmark comparisons for limited intervals.

• Fact-based counterpoint: Neutral market-data criteria (percent declines, durations, volatility indicators) are the standard for classification. When communications label 2022 as a "crash," a careful reader should distinguish between a political characterization and a technical market classification (correction, bear market, crash).

Presenting both the political messaging and the underlying data helps readers evaluate whether the phrase "crash" is an accurate descriptor or rhetorical shorthand.

Comparison with other presidencies

Comparisons between presidencies must control for starting conditions, exogenous shocks, and policy actions.

• Pre-existing conditions: The 2020 COVID crash occurred before the Biden presidency and shaped starting index levels and recovery dynamics.

• Relative performance: Some analyses (e.g., media summaries in 2022) noted that certain short-term performance measures during Biden’s early tenure compared unfavorably with a handful of prior presidencies when measured over similar calendar windows—especially when the COVID-era volatility is normalized.

• Drivers differ: Historical crashes (e.g., 1929, 1987, 2008, 2020) had distinct causes—macroeconomic imbalances, policy missteps, financial-sector leverage, or exogenous shocks. The 2022 downturn was driven largely by inflation and monetary-policy shifts rather than a financial-system solvency crisis.

Thus, while comparative metrics can be useful, they do not alone settle whether a given sequence constitutes a "crash" without attention to cause, duration, and market mechanics.

Assessment and synthesis: did the stock market crash under biden?

Restating the question precisely: did the stock market crash under biden (Jan 20, 2021–Dec 31, 2023)? The evidence-based answer:

• The U.S. market experienced a significant and painful bear market in 2022, with peak-to-trough declines exceeding 20% for major indices and larger for technology-heavy benchmarks. By the commonly used threshold, that period does qualify as a bear market.

• However, the market did not experience a single, rapid, multi-day collapse of the exact nature of the February–March 2020 crash during the Biden presidency through 2023. The 2022 decline was largely a policy-driven repricing over several months rather than a sudden panic-led crash.

• Political actors used the term "crash" at times for rhetorical effect; neutral market-metrics distinguish a bear market (2022) from the acute crash event in 2020.

Therefore, the most accurate phrasing is: the market endured a major bear market and sharp losses under Biden (notably in 2022), but it did not suffer a short-duration, crash-style collapse equivalent to the March 2020 event during the Jan 2021–Dec 2023 window.

What indicators should readers watch going forward?

Investors and observers typically monitor the following to assess ongoing market stress:

• Index-level peak-to-trough moves (S&P 500, NASDAQ, Dow)
• VIX and realized volatility measures
• Breadth indicators (number of advancing vs. declining stocks)
• Trading volume and liquidity metrics
• Interest-rate expectations and central-bank communications
• Corporate earnings and guidance trends

Keeping these indicators in view helps separate ephemeral headline language ("crash") from market-structure reality.

Practical takeaways and where to learn more

• Precise language matters: "Correction," "bear market," and "crash" imply different dynamics. When asking "did the stock market crash under biden", check whether sources rely on technical thresholds or political framing.

• Context is essential: The severe March 2020 crash preceded the Biden presidency and set a volatile baseline. The 2022 bear market reflected monetary-policy tightening in response to inflation.

• For market data and tools: readers can access index histories, volatility measures, and historical charts on major market-data platforms and trading services. If you use a platform to track indices or learn trading, consider reputable providers; for Web3 wallet integrations or exchange tools, Bitget offers product and educational resources tailored to market monitoring and execution (explore Bitget Wallet and Bitget exchange features to learn more about market data and risk-management tools).

See also

• 2020 stock market crash (background)
• Stock market correction
• Bear market definition and history
• Federal Reserve monetary policy actions
• Market volatility (VIX) and indicators

References

• CNN (2022). Coverage and analysis on early Biden-era market performance; media analysis compared the administration’s market record in 2022 to historical presidencies. As of 2022, CNN reported analysis of Biden’s stock market record.

• House Budget Committee / New York Post excerpt (2024). Example of political claims characterizing market outcomes as a "crash" in political communications. As of 2024, some political communications republished media language alleging a market crash under the administration.

• Wikipedia: "2020 stock market crash" (2020). Background documentation on the rapid February–March 2020 COVID-era crash and market mechanics that preceded the Biden presidency.

• Public market-index data (2021–2023). Official index providers and exchange records contain the day-by-day values used to quantify peak-to-trough moves and annual returns cited in this article.

Article note: This article is informational and neutral in tone. It summarizes public market metrics and media reporting about market performance during the Biden presidency through Dec 31, 2023. It does not provide investment advice. For trading tools and market-monitoring features, consider Bitget’s educational resources and product offerings.

Further exploration: Learn more about how markets are evaluated and track indices in real time with Bitget’s educational guides and market-data tools. Explore Bitget Wallet for secure portfolio tracking and Bitget’s learning center for market fundamentals.