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Comic: Trump Tweets Trigger Market Volatility Amid Panic and Confusion

Published 15/08/2019, 13:16
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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.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

-- Reuters contributed to this report

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