As the Dow Jones Industrial Average’s losses snowballed on Wednesday, President Donald Trump scrambled to identify a scapegoat.
Today’s stock market antagonist? Congressional Democrats and their “impeachment nonsense.”
Trump made the revelation on Twitter, as the Dow spiraled toward a 500-point meltdown and the S&P 500 cratered below its 100-day moving average (DMA).
At last check, the Dow Jones Industrial Average had plummeted 485.01 points or 1.83%, reducing the DJIA to 26,088.03. At its session low, the Dow came within 35.18 points of breaching the 26,000 level.
In his tweet, Trump railed against impeachment-minded Democrats, accusing them of purposely hurting the country and driving the stock market down to hinder his reelection chances in 2020.
“All of this impeachment nonsense, which is going nowhere, is driving the Stock Market, and your 401K’s, down. But that is exactly what the Democrats want to do,” Trump seethed. “They are willing to hurt the Country, with only the 2020 Election in mind!”
Most market analysts have a different read on today’s downturn, which piled onto Tuesday’s 343.79 point drawdown – the DJIA’s worst pullback in more than a month.
Investors appear concerned that Wednesday’s private-sector payrolls report, coupled with Tuesday’s abysmal manufacturing data release, presage an impending recession for the US economy.
After all, the impeachment saga first began on Sept. 24, when Democrats led by House Speaker Nancy Pelosi announced a formal inquiry into President Trump’s infamous phone call with Ukraine’s president, Volodymyr Zelensky.
Stocks recoiled at that announcement, but Wall Street analysts downplayed the expected market impact as little more than political theater.
Wednesday’s Dow Jones nosedive saw 28 of the index’s 30 members report declines, with each of those companies falling at least 1%. Walgreens Boots Alliance and Cisco led the retreat, falling more than 3% on the day.
The S&P 500 and Nasdaq were not immune from the suffering. The large-cap S&P 500 dove 53.82 points or 1.83% to 2,886.43, while the tech-heavy Nasdaq slid 1.77% to 7,769.08.
Click here for a live Dow Jones Industrial Average chart.
Last modified: September 23, 2020 1:04 PM