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In a tweet on Tuesday, President Donald Trump associated the stock market's stalled success in the elections, suggesting that if the Democrats won on November 6, this could result in more losses.
While the major averages oscillate around the correctional territory, defined as a 10% drop from the last peak, Trump has raised the stakes for the election campaign amid frayed nerves on Wall Street.
Market veterans attributed the October liquidation to various factors, including political uncertainty in Washington. Among other things, Trump has engaged the United States in a commercial battle with China, which some corporate executives have cited as a major concern for future profitability.
Markets were about to make a solid gain in the opening, up to 150 points. The futures contracts slightly reduced these gains around the time Trump's tweet was hit and just recently reported a modest loss.
Current polls indicate that the Republican president will lose his majority in the House but will keep him in the Senate. This would create a split government that could make it more difficult for Trump to move his agenda forward. Many experts expect that a Democrat-controlled House will open Trump administration investigations.
In addition to hitting the Democrats, Trump sent another tweet that highlighted the Federal Reserve's impact on the market.
Scott Wren, global equity strategist at Wells Fargo, said, "If the Fed steps back and starts talking a little more Dovish," it could bring the market back to its record highs. Wren made the statement Tuesday in an interview with Fox Business.
The central bank has recently been a favorite of Trump, who said higher interest rates were the biggest threat to economic recovery under his administration.
This story is growing. Please check again for updates.
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