By CCN Markets: Dow Jones Industrial Average (DJIA) futures rocketed 200 points in early trading Monday as President Donald Trump sought to allay fears of a recession.
Speaking to reporters in New Jersey on Sunday, he said:
“I don’t think we’re having a recession… “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”
It comes after the Dow suffered a painful 800 point slide on Wednesday after a key recession indicator flashed red for the first time in more than a decade.
Dow futures leap 200 points on Monday
After a disastrous week on the stock market, the Dow Jones Industrial Average (DJIA) looks set to open with a bang on Monday. At 5.34 am ET, Dow futures traded 218 points higher at 26,125.
It marks a strong recovery after last week’s painful stock market collapse. The pain point was triggered when the 10 year Treasury bond yield inverted below the 2 year yield. A classic recession indicator which has historically preceded every major downturn for the last 50 years.
Trump and White House shrug off recession fears
After the Dow’s brutal plunge last week, Trump spoke to the heads of Citigroup, JP Morgan Chase, and Bank of America, seeking reassurance on the economy. Trump concluded that the economy is stable for now, even as European nations like Germany tip into recession territory.
“Most economists actually say we are not going to have a recession… “Most of them are saying we will not have a recession but the rest of the world is not doing well like we are doing” – President Donald Trump.
Trump’s White House advisors doubled down on the same rhetoric. As CCN reported,…