Here’s How Wildly Stocks Swing When Trump Mentions the Trade War
This article is for subscribers only.
Put a whipsaw on a rollercoaster and you are close to how traders would describe the recent spate of swings in U.S. stocks, kick-started once more by a barrage of tweets by President Donald Trump.
It began Friday while investor focus was firmly on Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole, Wyoming. Trump quickly stole his thunder, labeling China’s Xi Jinping a potential enemy on Twitter, announcing he’d retaliate against the Asian nation’s latest tariffs and ordering U.S. companies out of the country. U.S. stocks suffered one of their worst losses of the year, falling as much as 3%, as investors rushed for the exits into the safer hands of Treasuries and gold.