Is Trump Economy In Peril? Dow Jones Dives, China Trade War Rages, Now This [Investor's Business Daily]
IHS Markit Ltd. Common Shares (INFO)
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Source: Investors Business Daily
The Trump economy may be the greatest in history , according to the tweeter in chief. President Trump sees the U.S. economy as his ticket to re-election and his Trump card in the China trade war. Yet there already are some indications that this may be a gigantic miscalculation. Thursday's stock market selloff showed that Trump's Dow Jones bragging rights are in jeopardy. But there's much more, including a sudden slowing of federal tax withholdings. In Thursday stock market trading, the Dow Jones tumbled 286 points, or 1.1%. The S&P 500 fell 1.2%, while the Nasdaq slid 1.6%. Since Trump's May 5 tweets set the course for an escalation of the China trade war, the Dow Jones has fallen more than 1,000 points to 25,490. While most Americans don't alter purchasing behavior based on the ebb and flows of the stock market, lower stock prices hurt sentiment and tighten financial conditions for raising new funds. With the tax-cut stimulus fading and the U.S. economy slowing back to trend growth,
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