Amanda Lang: Trump tweet on stocks makes no sense — again
President Donald Trump attributed declines in leading U.S. stock indexes to “a little pause” as investors wait to see the results of the midterm elections.
“If you want your Stocks to go down, I strongly suggest voting Democrat,” Trump tweeted Tuesday morning. “They like the Venezuela financial model, High Taxes & Open Borders!”
Stocks fell on Monday after a Bloomberg News report that the administration would move forward with additional tariffs against China if Trump couldn’t make progress toward resolving its trade dispute during a meeting with Chinese President Xi Jinping in early December. Markets have already been under pressure from concerns over rising interest rates and peak earnings growth. The S&P 500 and Nasdaq indexes are on track for the steepest monthly declines of the record-long bull market.
Trump previously blamed the Federal Reserve for stock declines, complaining after the central bank raised its benchmark policy rate three times this year, by a quarter-percentage point on each occasion. In an interview last week with the Wall Street Journal, Trump said he “maybe” regretted appointing Federal Reserve Chairman Jerome Powell.
Markets on both sides of the border finished Tuesday positive. The Dow Jones Industrial Average closed 431.72 points higher at 24,874.64, the S&P 500 closed 41.38 points up at 2,682.63 and the Nasdaq finished the day up 111.36 points at 7,161.65. In Canada, the S&P/TSX Composite Index closed 172.75 points higher at 14,894.50.
Trump said in the interview that Powell “almost looks like he’s happy raising interest rates” and that it’s “too early to tell, but maybe” he regrets appointing him.
In his tweet Tuesday, Trump said markets were still “massively up” since his election.
The Dow Jones Industrial Average is up more than 33 per cent since Trump was elected, though has seen a decline of 1.12 per cent since the beginning of 2018.
White House economic adviser Larry Kudlow has also argued that politics -- rather than the president’s trade policies -- are to blame for recent market losses. Earlier this month, he told reporters that stocks may be “gyrating” because investors were worried Democrats in Congress would overturn the president’s economic policies.
“Businesses large, medium, and small do not want the tax cut overturned,” Kudlow said.