The stock market is making a “big mistake”, Donald Trump said on Thursday, days after a record-breaking sell-off on the US exchanges.
“In the ‘old days,’ when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good (great) news about the economy!” Trump wrote on Twitter in his first public comment on the sell-off.
The Dow Jones industrial average lost 1,175 points on Monday following another sharp fall last Friday. The drop appears to have been triggered by news of stronger than expected growth in wages which fueled expectations of a sharper rise in interest rates from the Federal Reserve.
Commenting on the markets on Tuesday White House press secretary Sarah Huckabee Sanders said the US economy was “incredibly strong” and “nothing that’s taken place over the last couple of days in our economy that’s fundamentally different than it was two weeks ago”.
Since his election Trump US – and global – stock markets have hit a series of record highs. Trump has consistently pointed to rising stock markets as proof that his economic policies are working.
Dow, S&P 500 and Nasdaq all finished the day at new RECORD HIGHS! pic.twitter.com/wJyB9d00hh
November 28, 2017
While his corporate tax cuts and push for deregulation have pushed share prices higher, US markets have been on a record breaking streak for nine years and have risen in large part thanks to economic strength around the world and unprecedented era of low interest rates. That period of low interest rates now appears to be coming to an end as central banks worry about inflation and those fears are leading to greater volatility in the stock market.