Fake news story fakes out the markets?

A rumor that Trump was going to put the tariffs on hold for 90 days moved the markets by over 1500 points just like that.

Not sure what this means for sure, but I can say that it seems like this solidifies the idea that this is a market overreaction that could be largely corrected with an adjustment to the tariff demands. It also tells me that when we do start seeing some free trade agreements (which now appear imminent) that those will also likely swing the market back and fairly quickly.

Now I would not put it past the Trump administration for being the ones floating the story just to see how the markets would react. Perhaps just to show everyone how easy it would be to push them back to the green with a single story. All that being said, I also believe that a market correction was in the cards and that the powers to be were looking for an excuse to put us into that correction area. Regardless of how this recovers, it may take a while to get us back to where we were at the market peak.

I think Trump is in dangerous territory suggesting that the markets do not matter to people. For no other reason, the markets reflect confidence and it is hard to remain confident in the economy as the stock market struggles. I think he discounts these losses a bit too much. That being said, if he does garner some tariff relief from other countries, and the market recovers, it will be a devastating blow to the Democrats. Especially considering how much they are gloating right now over the market losses. But such is the problem with making a huge deal out of every single thing.

All other economic indicators suggests that we are looking at a strong economy in spite of all the chaos with trade. Trump seems to be pressuring the FED to lower rates and possibly a stock market problem could push that sort of action. But that seems like breaking your leg in order to get the doctor to see you about a head cold. Seems like a bad trade.