Thursday, November 15, 2018


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President Donald Trump tied the success of the faltering stock market to the election in a tweet Tuesday, suggesting that if the Democrats prevail on Nov. 6 it could mean more losses.

Trump tweet

With major averages teetering around correction territory, defined as a 10 percent drop from the most recent high, Trump upped the ante for the election amid fraying nerves on Wall Street.

Market veterans have attributed the October sell-off to a variety of factors, paramount among them the political uncertainty in Washington. Among other things, Trump has the U.S. engaged in a trade battle with China that some company executives have cited as an important concern for profitability going forward.

Stocks opened higher Tuesday morning as major averages looked to clear out of the correction territory where they had been lingering.

Current polling indicates the Republican president will lose his majority in the House but maintain it in the Senate. That would set up a divided government that could make it more difficult for Trump to push his agenda through. Many pundits expect a Democrat-controlled House would launch investigations into the Trump administration.

In addition to his knock on the Democrats, Trump sent another tweet that pointed to the impact the Federal Reserve is having on the market.

He quoted Scott Wren, senior global equity strategist at Wells Fargo, as saying “If the Fed backs off and starts talking a little more Dovish” that could send the market back up to its record highs hit earlier. Wren made the statement in an interview Tuesday with Fox Business.

The central bank has been a favorite foil recently for Trump, who has charged that higher interest rates are the biggest danger to the economic recovery seen during his administration.

This story is developing. Please check back for updates.

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