By CCN Markets: The stock market entered a devastating free-fall after President Trump fired out a barrage of tweets today aimed at China and Fed Chairman Jerome Powell.
"My only question is, who is our bigger enemy, Jay Powel (sic) or Chairman Xi?," Trump tweeted this morning.
He deleted that tweet - but only to correct his spelling:
As a result, Trump responded with a Twitter rant against the superpower in the East. He tweeted that they’ve stolen our intellectual property and infused the U.S. with the opioid Fentanyl.
The entire debacle has investors scrambling - and the stock market plunging.
The Dow Jones Industrial Average dropped 516.14 points or 1.97%. The S&P 500 has fallen by more than 2%, while Nasdaq dropped 2.59%.
Meanwhile, safe-haven assets, like gold, are surging.
Trump has clashed with Powell before. The president has consistently pressured Powell to lower interest rates to boost the economy.
Powell, whom Trump appointed Federal Reserve Chairman in February 2018, recently hinted that Trump’s aggressive stance against China has had consequences. During the Fed’s annual Jackson Symposium on Friday, Powell said:
“Trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States.”
China stated that they would attach tariffs of 5% and 10% on over 5,000 products beginning September 1st. A second round of tariffs is set for December 15th, which will include a 25% tax on US auto imports.
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