Wednesday, President Trump targeted Fed policy as the reason for this recent market turmoil.
In raising interest rates 4X last year “the Federal Reserve acted far too quickly, and now is very, very late,” in reversing itself and cutting borrowing costs, President Trump tweeted. “Too bad, so much to gain on the upside!”
President Trump continued to hammer the Fed and its Chairman Jerry Powell, in more Tweets.
“We are winning, big time, against China,” President Trump continued. “Companies & jobs are fleeing. Prices to us have not gone up, and in some cases, have come down. China is not our problem, though Hong Kong is not helping. Our problem is with the Fed. Raised too much & too fast. Now too slow to cut….
“..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!“
Earlier Wednesday, White House trade adviser Peter Navarro told reporters that the Fed should cut rates by half a percentage point “as soon as possible,” an action he predicts will lead “to 30,000 on the Dow.“
Wednesday, the major US stock market indexes finished at: DJIA -800.49 at 25479.40, NAS Comp -242.42 at 7773.95, S&P 500 -85.72 at 2840.60
Volume: Trade on the NYSE came in at 988-M/shares exchanged
Volume on all US exchanges was 8.68-B/shares, compared with the 7.47-B/share average over the last 20 trading days
Each of the major US indices lost around 3.0% Wednesday. Broad-based selling left both S&P 500 and Russell 2000 down 2.9%. The DJIA lost 3.1%, and the NAS Comp lost 3.0%.
Over 300 of the S&P 500’s components are down 10% or more from their 52-wk highs, according to Refinitiv data. More than 180 of those stocks have fallen more than 20% from their 52-wk highs, putting them in Bear market territory.
All of the 11 S&P 500 sectors closed in the Red, with energy, financials, materials, consumer discretionary and communications services all falling 3% or more.
Declining issues outnumbered advancing ones on the NYSE by a 4.44-to-1 ratio, and on the NAS, a 5.33-to-1 ratio favored decliners.
The CBOE volatility index, the VIX, a gauge of investor fear, jumped 4.58 points to 22.10 (VXX)
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bearish in here.