On Monday, as U.S. stocks fell sharply, CNN’s Michelle Price warned that the enthusiasm around Vice President Kamala Harris might be fading. Price noted that the Trump campaign was using memes to mock Harris, especially after the stock market’s recent decline.
U.S. stocks dropped significantly when trading began on Monday, continuing the steep decline from Friday. This ongoing fall is heightening fears of a possible recession.
Price suggested that the initial excitement surrounding Harris could diminish as people focus more on their 401(k)s, gas prices, and grocery costs. She noted that this could be the moment the Trump campaign has anticipated.
CNN’s John Berman advised Harris to avoid making the same errors as President Biden by presenting an overly optimistic view of the economy. Berman pointed out that Harris has been aware of public sentiment regarding economic issues.
The Dow Jones Industrial Average fell by up to 1,300 points, and both the Nasdaq Composite and S&P 500 also saw significant drops.
A recent weak jobs report and declining manufacturing activity, along with poor forecasts from major tech companies, pushed the Nasdaq 100 and Nasdaq Composite into correction territory last week.
The “Sahm Rule,” a well-regarded recession indicator, also signaled trouble. This rule indicates a possible recession when the 3-month moving average of the unemployment rate is at least 0.5 percentage points above its 12-month low. Currently, the 3-month average unemployment rate is 4.13%, which is higher than the 3.5% rate recorded in July 2023, indicating a potential recession.