The Dow Jones Industrial Average fell 800 points on Wednesday, its biggest one-day fall this year, after data showed world economic growth slowing further, undermined by President Trump’s trade protectionism, leading the U.S. Treasury yield curve to invert and flash a recession warning signal.
All 30 stocks in Dow Jones Industrial Average closed lower for only the third time this year, and all eleven sector indexes in the S&P 500 ended lower, reversing gains notched Tuesday when the Trump administration said it would delay the imposition of some new tariffs on Chinese goods.
But there are still “structural issues” the U.S. needs to settle with China through negotiations, White House trade advisor Peter Navarro told Fox Newson Wednesday. These issues include cyber intrusion into U.S. business networks, forced technology transfer, intellectual property theft and currency manipulation, he added.
Navarro and Trump both blamed the Federal Reserve for slowing economic growth and the fall in stocks. “This is basically the Federal Reserve’s problem,” Navarro said. “They are causing this because when Jay Powell got in as chairman he proceeded to rein in interest rates by 100 points, too far too fast. Even though the Trump economy is rock solid, it slowed us down a bit because of those higher interest rates.”
How are the major benchmarks faring?
The Dow Jones Industrial Average DJIA, -3.05% fell 800.49 points, or 3.05%, to 25,479.42, while the S&P 500 index SPX, -2.93% shed 85.72 points, or 2.93%, to 2,840.60 and the Nasdaq Composite COMP, -3.02% lost 242.42 points, or 3.02%, to 7,773.94.
The 3.05% fall in the Dow was the largest one day fall since December 4th last year.
On Tuesday, the Dow Jones Industrial Average rose 372.54 points, or 1.4%, to end at 26,279.91, for the biggest one-day gain in two months. The S&P