Blow for Donald Trump after record falls in US markets
The Dow, as it is more commonly known, fell more than 1,500 points throughout yesterday, but ended the day declining by 4.6 per cent, or 1,175 points.
The precipitous fall represents the worst day for the stock exchange markets in America since the summer of 2011, when volatility in Europe and a looming debt ceiling crisis spooked investors.
Yesterday’s fall could be a sign of a market correction after a year of record-breaking highs, still took traders by surprise yesterday, and had a knock on effect for other global markets.
Overnight, Japan’s Nikkei 225 and South Korea’s Kospi suffered losses, while the FTSE 100’s opening numbers in the UK were similarly grim, crashing by more than 230 points to 7,104.94.
Previously strong economic performance in America could have sparked the sell-off, as investors fear that better than expected job data could spark a rise in inflation.
The news is a particularly large blow for President Donald Trump, who, in a sharp change of protocol from previous White House occupants, has sought to tie market successes directly to his own policies.
Just last month, he tweeted: “Dow goes from 18,589 on November 9, 2016, to 25,075 today, for a new all-time Record. Jumped 1000 points in last 5 weeks, Record fastest 1000 point move in history. This is all about the Make America Great Again agenda! Jobs, Jobs, Jobs. Six trillion dollars in value created!”
It is estimated that over a trillion dollars of that value was lost yesterday.