Trump tweet cheers up Wall Street after Monday rout
US stocks edged higher in the first hour of trading on Tuesday. Forecasts were pointing lower, but a tweet by US President Donald Trump may have given the markets some confidence.
The Dow Jones Industrial Average was up 206 points to 24,649, the S&P 500 index gained 0.8 percent, while the Nasdaq Composite Index was also up 0.8 percent.
“The Stock Market is up massively since the election, but is now taking a little pause - people want to see what happens with the Midterms. If you want your stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, high taxes & open borders,” Trump tweeted Tuesday.
October has been a horror show for US equities with major indices down in correction territory of over 10 percent from recent highs. The Dow has given up its gains for the entire year.
Trump also said he believed “a great deal” on trade can be agreed with China, but warned about new tariffs if the deal is not struck. Bloomberg earlier reported that the US will likely announce tariffs on all remaining Chinese imports by early December if talks between Trump and his Chinese counterpart Xi Jinping fail.
“Right now the market is hungry for stability and some calming activity, which is temporarily being offered by the latest positive news on trade,” said Andre Bakhos, managing director at New Vines Capital, as quoted by Reuters.
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