Tuberville, Alabama Lawmakers Blame ‘Kamala Crash’ for Market Unrest: What Caused the Stock Market Drop?

A massive sell-off on Wall Street and growing fears of a recession have prompted Alabama lawmakers to blame President Joe Biden and Vice President Kamala Harris for what they see as the start of an economic downturn.

On Monday, the Dow Jones Industrial Average plummeted more than 900 points by midday, fueled by global concerns over economic instability.

Overnight, investors caused the Japanese market to experience its worst day in decades, sending some of the world’s largest technology companies into a nosedive.

Alabama U.S. Senator Tommy Tuberville capitalized on the news, using it to campaign for former President Donald Trump, the Republican presidential nominee.

Trump took to his Truth Social account to assign blame in several posts. “Stock markets are crashing, jobs numbers are terrible, we are heading to World War III, and we have two of the most incompetent ‘leaders’ in history. This is not good,” one post read. Another declared: “TRUMP CASH vs. KAMALA CRASH!”

The market turmoil comes on the heels of weak job numbers from last week and the Federal Reserve's decision not to cut interest rates.

Additionally, according to the Associated Press, investors are heeding warnings that Nvidia and other major tech stocks have become too expensive, with concerns that substantial investments in artificial intelligence may not yield profits for some time.

The Bank of Japan has also begun raising interest rates, unsettling Japan’s markets.

On Friday, the Nasdaq composite entered a correction phase, marking a 10% decline from its most recent high. By Monday, the Nikkei had plunged more than 12%, its worst drop since 1987.

Prices for oil and other commodities also fell.

Tech stocks, often called the “Magnificent Seven,” disappointed investors with their latest earnings reports, raising concerns about potential profit gains.

Apple shares dropped 5% on Monday after Warren Buffett’s Berkshire Hathaway disclosed a reduced ownership stake in the iPhone maker. Nvidia lost more than $238 billion in market value on Thursday and Friday and saw its stock decline by another 7% on Monday.