A Major Gut Check to Stock Market by Trump and Powell

The speeches made by President Donald Trump and Jerome Powell have delivered a major gut check to stock market, at records. Mr. Trump made a highly anticipated speech at the Economic Club at New York and said that Beijing is “dying to make a deal” with him.

The Dow Jones Industrial Average has recorded its ninth all time high in 2019. But further records for the market may be up for a few hiccups because of series of speeches by Mr. Donald Trump and Mr. Jerome Powell, arguably the most important people to the stock market.

Mr. Donald Trump, the President of America said in his speech, delivered at the Economic Club of New York at 12 PM Eastern Time, that his administration had “exceeded expectations” on the U.S. economy. It has created seven million new jobs and he repeated his charges against the Federation that it has cut interest too slowly. He further said that if the Feds were working with him, he could have added another 25% to those numbers. He was referring to the potential gains to major stock benchmarks.

The President, in his speech, mentioned international relations but did not make any concrete declarations about the outlook for the current phase of talks between the major counterparts. It includes China also. President Trump made a statement that Beijing was “dying to make a deal” with the U.S. But the President did not offer any details on this topic. He did not say if the tariffs would be phased and he did not mention any place or time for a meeting with the Chinese President Mr. Xi Jinping, for signing a deal.

The latest reports suggests that the President will delay imposing levies on imports for six months at least on European auto imports.

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