- The Dow suffered a brutal decline on Tuesday.
- The stock market is on track to record its worst loss in two months.
- Here are ten reasons why the stock market tumbled so far today.
The Dow Jones Industrial Average notched its third straight triple-digit decline on Tuesday, falling as much as 450 points during its worst sell-off since October.
Here are ten reasons why the stock market performed so miserably today.
1. Trump upended the US-China trade deal forecast with a single comment.
Although the trade war has dragged on for more than a year, President Donald Trump and his advisers have habitually maintained that the White House is on the verge of a deal with Beijing.
Trump shocked investors this morning when he broke from that party line, telling reporters that he may wait until after the 2020 US presidential election to finalize a trade agreement.
2. White House officials are already doubling down on the president’s remarks.
Hours later, Commerce Secretary Wilbur Ross defended Trump’s sudden strategy shift. He claimed that by waiting until after the election, Trump would take away leverage from Beijing.
He told CNBC:
That takes off the table something that they may think gives them some leverage. Because once the election occurs — and the president seems to be in very good shape for the election — once it occurs and he’s back in, now that’s no longer a distraction that can detract from our negotiating position.
3. Trump called today’s stock market plunge “peanuts.”
President Trump has long tracked the day-to-day performance of the stock market to gauge the impact of his policies.
Consequently, investors may have harbored hopes that he would seek to calm a fearful Wall Street after this morning’s sell-off proved that markets aren’t enthusiastic about waiting another 12 months for a trade deal.
Much to their chagrin, Trump scoffed that today’s stock market downturn…