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Comic: Trump Tweets Trigger Market Volatility Amid Panic and Confusion

Published 08/15/2019, 08:16 AM
Updated 08/15/2019, 08:19 AM

Investing.com - Markets continued to monitor Donald Trump’s Twitter account, as tweets from the U.S. president this week regarding the U.S.-China trade war and the Federal Reserve triggered extreme volatility.

Trump sent markets on a wild rollercoaster rise this week, all with less than 280 characters on Twitter.

Wall Street stocks took a beating on Monday, with the S&P 500 losing 1.2%, amid concern over the lack of progress in U.S.-China trade talks.

Equity markets rebounded on Tuesday, with the S&P bouncing back nearly 1.5% after Trump announced that he would delay fresh tariffs on Chinese imports, which were due to go into effect on Sept. 1.

Kenta Inoue, senior market economist at Mitsubishi UFJ Morgan Stanley (NYSE:MS) Securities, pointed out that Trump's tariff delay came just as U.S. stocks were stalling.

"This appears to be a routine ploy by the U.S. president, who applies trade pressure on China when stocks are doing well and opts for compromise when they are not," Inoue said.

Wednesday saw markets suffer their worst day of the year, with all three of the major U.S. stock indexes tumbling about 3%, amid recession signals from the bond market.

Markets looked set to bounce back again on Thursday as China reiterated that it hopes the U.S. can meet it halfway on trade.

The S&P 500 advanced to a record high at the end of July, but it has lost momentum this month, with the S&P down more than 4% so far in August.

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-- Reuters contributed to this report

Latest comments

all trumps for Rikers Island 2020, resort is already built.
Fewer and fewer bubba s are showing up at the pep rallys.
He's only worried about being better than Obama.
No president has ever had a major impact on the market like DT. Right or bad, he is doing what he needs to do and the US will win.
biggest insider trader ever, don't be surprised guys when he leaves office and builds a casino in Europe or Asia, with your tax money.
Trump is a boss, what a great man, wonderful person. I hope he gets re-elected, first president that gets things done!
ha ha good one
Healthcare? Immigration? Hes done nothing
I am so sick of this egomaniac constantly trying to manipulate the markets. And ironically he accuses China of manipulating their currency. What's the difference? He is such a tool. and every time he promises there's movement and progress it turns out to be a total lie.
just keep your mind opened.
to what, the lies, treson, racism, its stupidity
Destroying the market every time he tweets something close to it. Been about 3 weeks and he did a tweet that crushed dreams of the market even getting back on track.
The good move of the US unplugging from China - like many good things - takes time.
The good move of the US unplugging from China takes - like many good things - time.
So many unwise traders. Do research, do technical analysis, and ignore noise like tweets. Social media is just noise. But, alas, the market is filled with gready, immature, undisciplined traders.
Volatility is good. Can trade more VIX.
I am confused what to say
Thank you for your insight.
Maga/Kaga 2020
I hope that HE continue the tweets,because I like volatility. ..
Everyone's Fault except his. Don't forget that tarriffs are GOOD for consumers!
sad
I have no doubt that he does.
wonder if he enjoys seeing the 'power of his tweets'
Not at all funny. Sad for all.
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