Trump: Wall Street sell-off would be 'big mistake'

Trump: Wall Street sell-off would be 'big mistake'
© Getty Images

President TrumpDonald John TrumpWayfair refutes QAnon-like conspiracy theory that it's trafficking children Stone rails against US justice system in first TV interview since Trump commuted his sentence Federal appeals court rules Trump admin can't withhold federal grants from California sanctuary cities MORE said traders selling stocks are making a "big mistake" on Wednesday, his first comments about the wild swings in the stock market that have cut into the gains made during his presidency.

Trump said the economy is strong and that those trading stocks will regret their actions.

"In the 'old days,' when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down," Trump tweeted. "Big mistake, and we have so much good (great) news about the economy!"

ADVERTISEMENT

 

The Dow Jones industrial average was up nearly 200 points in morning trading. 

It fell more than 2,000 points from midday Thursday to Tuesday morning before gaining by the end of Tuesday.

The sell-off has been triggered by fears that a growing economy will raise inflation and lead the Federal Reserve to increase interest rates.

Trump has repeatedly highlighted the rising market as a testament to his economic stewardship over the past 12 months, most recently in his State of the Union address last week. His warning differs with the reaction of his Treasury secretary and Republican lawmakers, who've called the downturn a natural, expected reaction to economic conditions.

ADVERTISEMENT

Treasury Secretary Steven MnuchinSteven Terner MnuchinMcConnell in talks with Mnuchin on next phase of coronavirus relief On The Money: Supreme Court upholds NY prosecutors' access to Trump's tax returns, rebuffs Congress | Trump complains of 'political prosecution' | Biden rebukes Trump, rolls out jobs plan Mnuchin: Next stimulus bill must cap jobless benefits at 100 percent of previous income MORE said Tuesday that stock markets are “functioning very well” amid wild volatility after a day of record-breaking losses.

"I don’t think these types of moves, given how much the market has rallied, pose systemic risk," Mnuchin said. "You've seen a normal market correction, although large."

House Financial Services Committee Chairman Jeb HensarlingThomas (Jeb) Jeb HensarlingLawmakers battle over future of Ex-Im Bank House passes Ex-Im Bank reboot bill opposed by White House, McConnell Has Congress lost the ability or the will to pass a unanimous bipartisan small business bill? MORE (R-Texas) said the downturn was “ironic, but totally predictable." 

“Artificial interest rates have been helpful for some on Wall Street, but not many on Main Street,” said Hensarling, who had long called on the Fed to quicken the pace of rate hikes.

House Ways and Means Chairman Kevin BradyKevin Patrick BradySupreme Court rulings reignite Trump oversight wars in Congress House fires back at Trump by passing ObamaCare expansion Congress set for fight over expiring unemployment relief MORE (R-Texas) said Monday that the stock market dip proved that the GOP tax bill passed enacted last month is already stimulating the economy.

“Corrections like this are normal," Brady said, arguing the tax downturn . “We want an economy where paychecks increase.”

Updated at 12:16 p.m.