If you logged in to your brokerage account after the close on Friday 8/23 you may have been in for a BIG surprise. A nasty one! I mean a 2.5% drop kind of surprise!!
Today was an interesting one. Futures declined, pre open, because of Xi’s comments about implementing fresh tariffs on US autos, followed by calming brief from Jerome Powell on the state of US economy around 10 AM that improved the indexes, then came multiple tweets from Angry Don misreading entirely what had transpired up to that moment. First, he called Powell “the enemy” of US for not taking action on interest rates. He was unaware that Powell was a keynote speaker at an event and this was not a Fed policy meeting. Second, he re-acted hastily to Xi’s comments by ordering US companies to stop doing business with China. Imagine that 😊
US Chamber of Commerce sent a message to the White House reminding the administration the importance of global trade because domestic market is limited in size and spending money.
As with all other big barks, time will tell us if this latest stance has any teeth!