By Zainab Shafiq 
President Joe Biden in the White House has stamped a significant influence on the financial stock market, showing notable gains across all major stock indices, including S&P 500 and Nasdaq Composite. His presidency also saw an element of economic recovery, market volatility, and long-term gains.
If you’re analyzing presidential stock market performances or simply curious about market trends, here’s an in-depth look at Biden’s impact on Wall Street.
Stock Market Gains Under Biden
Since Joe Biden took office in January 2021, the S&P 500 index has risen more than 55%, and the Nasdaq Composite about 46%. These gains represent a period characterized by recovery from pandemic-induced recession, bull market, and smart economic policies.
Yet small-cap shares were not much of a standout. The small-cap index, represented by the Russell 2000, gained a little less than 1%, said Dow Jones Market Data, as it became the worst performance for a president in any benchmark under an elected president throughout modern history.
Biden’s presidency saw the S&P 500’s seventh-best performance over the past seven decades, which is commendable but falls short of records set by past administrations. Notably, former President Donald Trump saw the Nasdaq Composite surge 137.6% during his term, while Barack Obama’s first term (2009–2013) produced an 84.4% gain in the S&P 500.
Historical Background Bill Clinton holds the record for the highest gain in the Dow Jones Industrial Average, which skyrocketed 110.8% during his first term, fueled by the tech boom of the 1990s.
Major Stock Market Trends During Biden’s Term
- 2021 Post-COVID Recovery: Biden started his presidency during the tail end of a post-COVID bull market, with a strong economic rebound and soaring stock prices.
- 2022 Bear Market: Rising inflation and aggressive interest rate hikes by the Federal Reserve were enough to deliver some significant market corrections, at least in growth stocks.
- 2023-2024 Resurgence: The S&P 500 delivered two consecutive annual gains of 24% and 28%, with investors feeling that things are turning around and the inflation is moderating.
If the Biden years were good to major indices, the small-cap stock performance looks to be signaling problems for small companies, often more sensitive to economic uncertainty.
Presidential Stock Market Rankings
Presidential stock market rankings give a window into economic activity and investor psyche during different administrations. Biden’s S&P 500 gains rank behind Obama’s first term but ahead of most other presidents. Some of the notable comparisons are as follows:
- Donald Trump: S&P 500 up 67.3%, Nasdaq up 137.6% (best ever Nasdaq performance).
- Barack Obama: S&P 500 up 84.4%, Russell 2000 up 105.9% (best ever Russell 2000 performance).
- Bill Clinton: Dow Jones up 110.8%, Nasdaq up 297.2% over two terms.
Key Takeaways
Biden’s stock market legacy is mixed in resilience and challenges. Even though the S&P 500 and Nasdaq were good performers, the lagging performance of the Russell 2000 points to differences within the overall market. When investors assess the economy under presidential policies, Biden’s term shows global recovery trends, inflation management, and fiscal policy in shaping stock market performance.
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