It was a black Wednesday as stocks on Wall Street fell to their lowest level in 8 months and in major world markets, slid to a three-month low, with the benchmark S&P500 stock index falling more than 3.0 percent, its biggest one-day fall since February.
Technology shares tumbled on fears of slowing demand, while bond yields ended lower after seeing multi-year highs earlier this week.
Despite the concerns, White House said U.S. economic fundamentals remain strong and the future of the American economy is bright.
“Unemployment is at a fifty year low, taxes for families and businesses have been cut, regulations and red tape have been slashed,” White House spokeswoman Sarah Sanders said in a statement.
But President Donald Trump shared a different perspective, saying Wednesday’s stock market sell-off was a correction that was long awaited, and that the Federal Reserve, which has been raising interest rates, has gone “crazy.”
“Actually it’s a correction that we’ve been waiting for for a long time, but I really disagree with what the Fed is doing,” Trump told reporters before a political rally in Pennsylvania.
“I think the Fed has gone crazy,” Trump said.
Major equity indexes in Europe fell more than 1.0 percent, also pulled down by technology shares, and gold prices inched up as some investors sought refuge in the metal.
“The S&P 500 is looking very weak and negative and that is putting fear into investors,” said Michael Matousek, head trader at U.S. Global Investors.
“With the markets going down people are increasing their allocation towards gold.”
On Wall Street, the Philadelphia Semiconductor index tumbled 4.46 percent after Swiss vacuum valve maker VAT Group said demand was