It’s frankly astounding to me how much power the Federal Reserve holds over the psychology of market participants. One reassuring comment from Jay Powell can send the market 5% higher in a week, while an offhand comment, such as we saw in October, can throw the market into a severe correction.
Article Category: China
Markets are rebounding today after yesterday’s precipitous fall, in which the S&P 500 and Dow Jones Industrials both experienced their worst day in four months. But make no mistake – the short-term trend remains down.
It’s been a rough start to the week (or an exciting start, depending on your perspective) as a result of reescalating trade tensions between the U.S. and China. On Sunday, President Trump stated that tariffs on $200 billion worth of Chinese imports would increase from 10% to 25%, and that another $325 billion in goods could fall under the 25% tariff “shortly.”