By CCN Markets: The inventory market entered a devastating free-fall after President Trump fired out a barrage of tweets at present geared toward China and Fed Chairman Jerome Powell.

“My solely query is, who’s our larger enemy, Jay Powel (sic) or Chairman Xi?,” Trump tweeted this morning.

He deleted that tweet – however solely to appropriate his spelling:

Trump Dumps on China – and the Fed – After New Tariffs

The criticism comes amidst a inventory market tumble initially caused by new Chinese tariffs. China introduced at present that they might hit the U.S. with commerce tariffs price roughly $75 billion.

As a end result, Trump responded with a Twitter rant in opposition to the superpower within the East. He tweeted that they’ve stolen our mental property and infused the U.S. with the opioid Fentanyl.

Stock Market Careens to Painful Loss

The complete debacle has investors scrambling – and the inventory market plunging.

The Dow Jones Industrial Average dropped 516.14 factors or 1.97%. The S&P 500 has fallen by greater than 2%, whereas Nasdaq dropped 2.59%.

dow jones industrial average chart
The Dow is down over 500 factors throughout mid-day buying and selling. | Source: Yahoo Finance

Meanwhile, safe-haven property, like gold, are surging.

Another Chapter in Trump & Powell’s Messy History

Trump has clashed with Powell earlier than. The president has persistently pressured Powell to decrease rates of interest to spice up the financial system.

Powell, whom Trump appointed Federal Reserve Chairman in February 2018, just lately hinted that Trump’s aggressive stance in opposition to China has had penalties. During the Fed’s annual Jackson Symposium on Friday, Powell mentioned:

“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 said that they might connect tariffs of 5% and 10% on over 5,000 merchandise starting September 1st. A second spherical of tariffs is ready for December 15th, which can embody a 25% tax on US auto imports.

Click here for a real-time Dow Jones Industrial Average chart.

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