The Dow Jones dropped more than 650 points in a shortened trading session today after the Trump administration sent out confusing signals about markets and the economy.
The Nasdaq was off 2.2%. The Dow, which fell 2.9%, and the S&P 500 suffered their biggest Christmas Eve percentage decline ever dropping 2.7%. Many companies that keep a close watch on the trade, like the Forex Academy, prognosticate that Nasdaq could continue declining its stocks. You can also visit https://www.percentagecalculator.co.uk/
Investors are concerned that Trump may fire Federal Reserve Chairman Jerome Powell. After rebounding slightly, the market dropped even lower after Trump tweeted:
“The only problem our economy has is the Fed.“
Some might say it was the guy sitting in the Oval and the stooges he’s hired, like doofus Treasury Secretary Steven Mnuchin who said on Sunday, that he had called the CEOs of the country’s biggest banks and they assured him their banks are healthy and have “ample liquidity” to lend to consumers and businesses.
“Markets continue to function properly.“
Major bank CEOs who spoke with Mnuchin were “totally baffled”. A source told CNN, describing the timing of the call,
“It was totally out of left field and an odd thing to do.“
Cowen & Co. analyst Jaret Seiberg wrote in a note to clients.
“This is the type of announcement that raises the question of whether Treasury sees problems that the rest of the market is missing. Not only did he consult with the biggest banks, but he is talking to all of the financial regulators on Christmas Eve. We do not see this type of announcement as constructive.”
Stocks are on pace for their worst December since the Great Depression. On Friday, the Dow ended its worst week since 2008. The Nasdaq is in a bear (down) market.
After another brutal day the Dow is 18.8%, or 5,036 points, off its and the S&P 500, also near a bear market, is down 19.8% from its high point October 3.
The partial shutdown of the federal government will continue at least until Thursday, and possibly into January isn’t helping. Goldman Sachs economists wrote in a research note,
“The confusion and disorder surrounding this week’s spending debate suggest fiscal deadlines in 2019 — including the debt limit deadline, which we expect to fall between August to October — could be more disruptive than they have been since the 2011-2013 period.”
The stock selloff in part reflects concern about a looming slowdown in economic growth and Trump’s trade war with China helped knock its stocks into a bear market over the summer.
If he claims credit for the rise, he’s gotta own the fall.
(Photos, YouTube screen grabs; via CNN)