Wall Street ended the wild August with a slight rise in the Dow on Friday, crowning a turbulent month for the global economy that triggered a wave of financial market volatility and a challenge for President Trump Donald John TrumpTrump portrayed will house the Kuwaiti head of government in the White House in September Survey of West Virginia Governor: Manchin kills the GOP's acting justice by 1
However, the three indices were well below their level for Wall Street at the start of the month following a notoriously harsh period. The Dow fell in August by 1.76 percent to 474 points. The index recorded two of its seven largest losses this month, falling 800 points on August 14 and 767 points on August 5.
The S & P saw a similar decline of 1.84 percent, while the tech-heavy Nasdaq slipped 2.6 percent for August ahead of new tariffs on China-made consumer electronics and parts. Overall, the major US indices are still close to the record highs they had reached the previous summer, and stocks have skyrocketed since President Trump took office in 2017.
The August whirlwind August for Wall Street, however, is expected to extend into the fall. a worrying prospect for Trump.
The president needs a strong economy to recruit voters in the swing states that are crucial to his 2020 re-election campaign. An unemployment rate close to historic lows, solid economic growth, rising wages, and booming consumer spending give Trump enough data to substantiate his arguments.
The recent turmoil also threatens to undermine this, as Trump has often linked the success of his economic agenda to the daily ups and downs of the stock market. And the roller coaster ride August comes at a critical time for the president, with growing concerns about its trade wars with China and Europe and fears of an impending recession.
Trump has tried to appease fearful traders by addressing China's progress toward agreement.
"Stocks were raised when China said it wanted to solve US trade problems with a" quiet "stance," wrote Ryan Sweet, director of real-time economics at Moody's Analytics, in a research report on Thursday. "We have seen that these truces are short-lived. Therefore, this does not change our subjective probability that a deal will be made, which is still low.
The President has also wiped or even joked some of Wall Street's bloodiest August losses.
At Reporters' Demand At the Group of Seven (G-7) summit meeting on financial market turbulence caused by its trade policy, Trump said, "Sorry, that's what I'm negotiating."
Last Friday, the Dow closed Jones reports a loss of 2.4 percent on August 23 After China announced new tariffs, the president joked that inventories were declining due to the decline in inventories. Morning Report – Gillibrand retires as the number of debaters declines. MORE (D-Mass.) Ended his presidential campaign in 2020.
While Trump has sought to curb growing fears of a recession, the US economy has clearly shown signs of slowing in the face of the global headwind and rising costs of its trade battles. Withdrawals in the UK and Germany, slowing growth in China and a number of geopolitical risks have also dampened the US economic outlook.
The bleak headlines and massive fluctuations on Wall Street in August have led to the sharpest decline in consumer confidence since 2012, according to the closely watched survey of consumer sentiment at the University of Michigan.
"While overall sentiment remains in line with moderate consumer growth next year, data has increased the likelihood that consumers will be knocked off the shelves in the coming months," said University Richard Curtin. "This could be a lot slower growth in consumption and the overall economy, "he added.
Trump is also more responsible for the obstacles the economy. In a survey of registered voters published by Quinnipiac University on Wednesday, 41 percent of respondents said the president's policy was at its highest level since he took office.
Consumer spending accounts for around 70 percent of US gross domestic product and households have fueled the strong economy with plentiful spending, even in growing concern. This dynamic makes a decline in consumer confidence a crucial warning of a more general slowdown.
"Consumers have used up their savings to spend more in July," said Diane Swonk, chief economist at Grant Thornton, in a Friday research report. "It is unclear how long they will do this, as the income slowdown and the prospect of further tariffs are foreseeable." and his own party to end his trade war with China.
The President dismissed fears of a recession and accused Democrats and the media of sabotaging the economy to derail his campaign. He also stepped up his pressure on the Federal Reserve to cut interest rates to the zero level of European countries exposed to deeper threats.
"If the Fed cut interest rates, we would have had one of the biggest stock market rallies in a long time," Trump tweeted Friday. "Poorly run and weak companies make these small tariffs smart and not blame themselves for bad management, and who can Excuses! "
Tomas Philipson, chairman of the White House Advisory Council (CEA), said reporters who wrote about the slowing economy seemed to want people to lose jobs and "Not becoming economically self-sufficient."
"The way the media reports on the weather does not affect the sun's shine tomorrow," Philipson told the New York Times in an interview on Thursday. "But the way in which the media report on our economies has an impact on consumer sentiment, which affects consumer purchases and investment." the damage of a slowing economy.
Trump has postponed the introduction of some new tariffs on Chinese goods from 1 September to 15 December, a move that he believes should protect consumers from higher purchase costs on vacation.
The President has also examined a possible tax idea that Sen. Rick Scott (R-Fla.) Put in a conversation with Trump's top economic adviser Larry Kudlow (19659032) Lawrence (Larry) Alan KudlowMORE .
"You can not do anything other than tariffs," Trump said Thursday. "By the way, I also do other things."
However, the president has also insisted that his trade approach brings benefits, an approach in which market observers are worried about more volatility.
It's about tariffs, "Trump said on Thursday's victory in the China trade dispute," It has a devastating effect and they come to the table and we'll see if they make a deal or not. "