Stock Market Reverses Gains After Trump Slams Fed

The Dow Jones and other bellwether stock market indices pared gains on Friday after President Trump slammed the Federal Reserve in a classic morning tweetstorm.

Trump Bashes Federal Reserve

Trump continued his long streak of Fed-bashing by laying into the central bank for raising interest rates in 2018 amid the stock market's precipitous downturn.

"Had they not acted so fast and 'so much,' we would be doing even better than we are doing right now," he seethed. "This is our chance to build unparalleled wealth and success for the U.S., GROWTH, which would greatly reduce % debt. Don’t blow it!"

The president further said that he agreed with New York Fed President John Williams that the Fed had raised rates too aggressively. However, according to a New York Fed spokesperson, that's not actually what Williams meant - even if Wall Street had initially interpreted it that way.

Stock Market Pares Gains

The Dow, which had surged 100 points at the open, slashed that rally in half about the time that Trump took to Twitter.

dow and stock market pare gains after trump tweets
Stock market wobbles after Trump tweets Fed criticism. | Source: Yahoo Finance

However, the stock market appeared to regain its footing in short order. At last check, the Dow had gained 69.09 points or 0.25% to hold at 27,292.06. The S&P 500 added 6.71 points or 0.22% to sneak across the 3,000 point mark to 3,001.91. The Nasdaq outperformed with a 30.41 point or 0.37% jump to 8,237.66.

Click here for a real-time Dow Jones Industrial Average (DJIA) price chart.

This article is protected by copyright laws and is owned by CCN Markets.

About the author

Josiah Wilmoth
Josiah Wilmoth

Josiah is the US Editor at CCN, where he focuses on financial markets and cryptocurrencies. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He holds bitcoin, but does not engage in day trading. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.