Many on Wall Street blame Trump for market tumble

Global Business

Many on Wall Street blame Trump for market tumble

U.S. stock markets rebounded Thursday, just one day after sending a message to the White House: Please, President Trump… focus.

CGTN’s John Terret reports from New York City.

Many on Wall Street blame Trump for market tumble

Many on Wall Street blame Trump for market tumble

U.S. stock markets rebounded Thursday, just one day after sending a message to the White House: Please, President Trump... focus. CGTN's John Terret reports from New York City.
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The Dow Jones Industrial Average closed out the May 18th session up 56 points at 20,663. Nasdaq was up 43 points – the broad market S&P 500 up 8 points. Yet on Wednesday financial stocks led a 2% sell-off in which even high powered tech star names like Apple were a part.

Many on the floor of the exchange in lower Manhattan blame the dip on U.S. President Trump for taking his eye off the economic ball. They want him to start acting more presidential – stop scoring own goals – and get on with boosting the U.S economy.

Steven Blitz, Chief U.S. Economist at TS Lombard told CGTN America: “He’s seventy years old I don’t know how much Donald Trump is going to grow up or change.”

Wall Street’s keen on Trump campaign priorities, like tax and health, but what they say they’re seeing instead is a confusing and unfocused administration

Case in point – the appointment of a special prosecutor to investigate Trump campaign links with Russia. Steven Blitz says, “Trump, because of his confrontational personality, can’t take this whole Russia election thing which to this point is a tempest in a teapot but he’s making it more of tempest than it really needs to be through his actions.”

Corporate earnings season is coming to a close now with many firms in a strong position. In addition, employment is rising, inflation tamed and interest rates low.

Amid all the media conjecture taking place, however, with even the word “impeachment” being murmured, some on Wall Street wonder how the market might rally if Vice President Mike Pence were to take over from Trump – a 1,000 point rally is the scuttlebutt.

Blitz says Pence wouldn’t be as charismatic as Trump, but he’d find it easier to work with Congress.

It’s powerful food for thought for Trump from a Street that considers him to be one of its own.