Home Business Markets Wall Street plunges as Trump tweet slams Federal Reserve

Wall Street plunges as Trump tweet slams Federal Reserve

No sign yet of a Santa rally.

Senior Digital Journalist, Your Money

US stocks took a hammering on Monday following a flurry of bad news and uncertainty in the lead up the Federal Reserve’s upcoming interest rate decision.

Overnight, the Dow Jones and the S&P fell 2.1 per cent and the Nasdaq dropped 2.3 per cent.

Adding fuel to the fire, US President Donald Trump continued his campaign against a rate hike, blasting the central bank on Twitter and arguing that it was “incredible” it was considering another rate rise.

CommSec chief economist Craig James told Business Breakfast that Wall Street’s fall was inevitable after the weight of bad news overnight.

“The uncertainty around whether the Federal Reserve will raise interest rates later in the week and we still haven’t got resolution as to the US-China trade dispute,” he said.

“And then we’ve got the small matter of the US government shutting down later in the week because Donald Trump isn’t getting his way in terms of funding for the wall in Mexico,” said James.

Trump delivered a reminder overnight of his promise last week to shut down the government over Christmas if taxpayers didn’t fund his promised wall between the US and Mexico.

 

Major companies were also affected, with Goldman Sachs, Johnson & Johnson and Amazon seeing share prices plummeting on the back of separate dramas.

Malaysia filed criminal charges against Goldman Sachs in relation to its involvement with a money laundering investigation tied to the country’s sovereign wealth fund 1MDBaccording to Reuters.

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