American billionaires ‘lose $93bn in a day’ as new inflation figures hit markets hard

“Unemployment is low. Jobs are up. Manufacturing is good. I think we’re going to be fine,” said President Joe Biden

The top billionaires in the US lost billions of dollars among them in a single day on Tuesday as markets hit a sharp downturn on the back of a grim economic report.

In the exchanges’ worst single day since the summer of 2020, when the impact of Covid-19 was ravaging the American economy, the S&P 500 dropped 4.3 per cent, the Dow Jones Industrial Average 3.9 per cent, and the Nasdaq Composite by 5.2 per cent.

As reported by Bloomberg, the implications for the US’s richest individuals were heavy. Jeff Bezos lost some $9.8bn; Elon Musk haemorrhaged $8.4bn and Mark Zuckerberg $5.6bn.

The three men’s combined net worth is close to $500bn, so their losses are mild in relative terms. However, the total $93bn losses at the ultra-high end of the wealth spectrum mark the ninth-worst daily total ever and are driven by a concern about potential interest rate hikes.

The markets’ torrid day was kicked off by a Consumer Price Index report showing that despite economic gains on other measures, inflation remains high in the US. The report’s sample of goods and services cost fully 8.3 per cent more than they did a year ago.

However, hiring has remained strong; with unemployment still at a low 3.7 per cent, the US economy last month added 315,000 jobs. It was the 20th month in a row with more than 200,000 new positions created.

Speaking to reporters in Delaware as the stock tumble unfolded, Mr Biden shrugged off the news. He pointed out that “the stock market doesn’t necessarily reflect the state of the economy, as you well know.

“The economy is still strong. Unemployment is low. Jobs are up. Manufacturing is good. I think we’re going to be fine,” he said.

The bad news of the CPI report was swamped somewhat by a press conference given by GOP Senator Lindsey Graham, who has introduced a Senate bill to ban abortion at the federal level after the 15th week of pregnancy – a measure that goes against mainstream Republican claims that legislation about abortion rights and limits should be left to the states.