6 Trump Tweets Wipes $500 billion off U.S. Stocks in One Day
The stock market lost over $300 billion in value in 15 minutes due to six tweets from President Trump. He even joked about the Dow being down later in the day as investors lost over $500 billion on Friday.
The Dow Jones closed 623 points down on Friday following the Trump tweets calling Fed the “enemy” and imposing new tariffs on Chinese imports from September.
Forbes reported that in the course of 2 minutes on Friday President Trump unleashed 6 tweets about Fed Chairman Powell’s speech at the central bank’s Jackson Hole annual economic policy symposium and China announcing that it would impose 5% to 10% tariffs on $75 billion of U.S. exports to China. The stock market reacted immediately and intensely negatively to Trump’s first set of tweets sending the Dow Jones 30 Industrials down about 400 points in 15 minutes and 500 points within an hour.
While the Dow and other indexes were essentially flat to up a bit during and after the Fed Chairman’s speech, the 120 seconds of tweets erased over $300 billion in value in those 15 minutes and the markets fell further during the day. Trump followed up with 4 more tweets later in the day, one of which was joking about the Dow dropping 573 points as investors had lost almost half a trillion dollars. For the day over $500 billion in equity was erased.
That’s $83 billion per tweet!
As the trade war escalates like a high-stakes poker game, shares started to tumble around the world and could be the trigger for another black Monday when markets open in Asia and then Wall Street. London will be closed for a public holiday on Monday 26 August.
Although markets had settled after earlier steep falls, Money Tips predicted that this would not be the end of market turbulence.
Word of the Day
What Is a Correction?
According to Investopedia, in the world of investments, a correction is generally defined as a decline of 10% or greater in the price of a security from its most recent peak. Corrections can happen anywhere including individual stocks, the indexes that follow stocks or sectors, the commodities and currency markets, or any asset that trades on an exchange.
- A correction is a decline of 10% or greater in the price of a security, asset, or a financial market.
- Corrections can last anywhere from days to months, or even longer.
- While damaging in the short term, a correction can be healthy, adjusting overvalued asset prices and providing buying opportunities.
A Stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are triggered by panic or an event, as much as by underlying economic factors. They often follow speculative stock market bubbles or long bull runs.
Significant crashes occurred in 1929, 1987 and 2008, but smaller crashes have happened in between those dates.
If you would like to learn how to invest in the stock market and make money whether the market is going up or down, drop me a line on FB or at email@example.com.
There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.