By CCN: The US stock market fought off triple-digit losses to mount a modest recovery on Wednesday, just one day after the Dow cratered by nearly 500 points. However, this short-term rebound bears all the red flags of a classic Trump pump, and the president may have shoved the market dangerously close to the cliff’s edge.
Donald Trump Pumps Stock Market With Dangerous Tweet
While Trump’s staggering business woes dominate the headlines, the US-China trade war continues to move the stock market on Wednesday.
Initially, the Dow, S&P 500, and Nasdaq slunk lower in response to a report that Beijing desired to fundamentally reshape the draft trade agreement that was the product of months of tedious negotiations.
Later, they shot higher after President Trump tweeted that Chinese negotiators were coming to Washington to “make a deal.” White House Press Secretary Sarah Huckabee Sanders affirmed Trump’s stance soon after, assuring reporters that the administration had received an “indication” that China wants to cut a deal.
“We got an indication they want to make a deal,” Sanders said, per a Reuters report. “Our teams are in continued negotiations. They’re going to sit down tomorrow. We’ll see what happens from there.”
The twin statements launched the Dow as high as 26,096.12, more than 200 points above its intraday low at 25,889.4.
The DJIA later pared those gains after China hinted that it would call Trump’s bluff if he raises tariffs on Friday. Beijing promised to take “necessary countermeasures” that could quickly reignite the dormant trade war.
Even so, all three major stock market indices continue to trade well above the lows forecast during a dismal pre-market futures session. All because…