Nobel Prize-winning economist Paul Krugman speaks during a press conference at the World Capital Markets Symposium in Kuala Lumpur, Malaysia, Monday, Aug. 10, 2009. Aggressive stimulus spending by governments helped the world avoid a second Great Depression but full economic recovery will take two years or more, Krugman said Monday. (AP Photo/Lai Seng Sin)
As my colleague Bonchie reported earlier today, the Democrats and media who were beating up President Donald Trump over the drop in the stock market last week, seem strangely silent today as the market began to recover.
— Paul Krugman (@paulkrugman) February 28, 2020
He even wrote an article titled “When a Pandemic Meets a Personality Cult” and falsely claimed Trump had cut the CDC and repeated the Democratic/media lie that Trump called the virus a hoax.
Of course, the drop had nothing to do with Trump, but with concerns about the global supply lines of goods. But he has done things to reassure the public, despite the efforts of some like Krugman to cause a panic.
But once people began to be reassured that things weren’t going to crash, they stopped the panic selling and started buying stocks back, a completely predictable reaction to anyone who understands markets. But of course, if you listened to Krugman, that’s not what you would have been hearing. In fact, today he hasn’t tweeted at all so far.
Not surprisingly, given how the stock market has done today. Every sector closed higher, five full percentage points higher, with the Dow up nearly 1300 points, up 1294, the largest one day point gain in history for the average. It was the biggest percentage gain at 5.1%, to 26,703.32 since March 2009, according to CNBC.
Stocks rose sharply at the close after a volatile day of trading. The Dow gained more than 1,100 points, or 5%, and the S&P 500 and Nasdaq both rose more than 4%. https://t.co/9N2VoIP60P pic.twitter.com/9AnT5qMjEi
— CNBC (@CNBC) March 2, 2020
Breaking: Dow Jones closes up nearly 1,300 points, or 5.1%. This marks the largest point gain in a single day. pic.twitter.com/XGjwYqsbtO
— PM Breaking News (@PMBreakingNews) March 2, 2020
#MarketWrap Major indexes surge into the close, all three log new record daily point gains.
DOW +1,293 points +5.09% at 26,703
NASDAQ +384 points, +4.49% at 8,952
S&P 500 +136 points, +4.60% at 3,090
— Greta Wall (@GretaLWall) March 2, 2020
The S&P 500 climbed 4.6% — its best one-day performance since Dec. 26, 2018 — to close at 3,090.23. The Nasdaq Composite also had its best day since 2018, surging 4.5% to 8,952.16.
Monday’s gains snapped a seven-day losing streak for the Dow.
Apple shares led the Dow higher with a 9.3% jump; Merck and Walmart gained 6.3% and 7.6%, respectively. Utilities, tech, consumer staples and real estate all rose more than 5% to lead the S&P 500 higher.
Of course it isn’t having the huge coverage in media that blamed the president for the drop had last week.
The Dow is up 1,300 points on the day—the biggest one-day gain in a decade—and it is not news on CNN or MSNBC, which is currently discussing the coronavirus but no longer feels the markets are part of the story like they were last week.
— Brent Scher (@BrentScher) March 2, 2020
As I said at the end of my Krugman article on Friday, if Krugman predicts disaster, be assured of recovery.
Once again, he proves that maxim right.
Although he’s been silent today, people were letting him know.
Dow 26,000. https://t.co/pDzA3aORU4
— Joe Concha (@JoeConchaTV) March 2, 2020
oh no somebody please check on Paul Krugman https://t.co/Y7b9ba7Qmt
— Kyle Smith (@rkylesmith) March 2, 2020
Nobody tell Paul Krugman. Don't spam him @paulkrugman. Please don't bombard his posts and message him incessantly. After cheering for the Dow dropping to 25,000. There's no telling how he'll take the news.
— Jon Wrangler (@officialjhenry) March 2, 2020
When Krugman says sell, back the truck up and buy, buy, buy! https://t.co/8NRm5tN6uj
— 76QBATI (@7Qbati) March 2, 2020
Paul Krugman hardest hit. https://t.co/JFsYTtMjdh
— Tim Murtaugh – Text TRUMP to 88022 (@TimMurtaugh) March 2, 2020
Krugman tweets that haven’t aged well, example 402.
— Tom McCarthy (@ishmael0464) March 2, 2020