Losses accelerated for U.S. stocks amid a day of sharp volatility after President Donald Trump unveiled his tariffs on China and the departure of his chief legal eagle John Dowd.
With less than an hour in the session, the Dow Jones Industrial Average is off over 600 points.
Stocks have been lower the entire session, moving lower in anticipation of the tariffs while they were spooked as Trump’s personal attorney John Dowd resigned on a mutual decision, according to The Washington Post.
While the big decline may be unnerving to investors, according to Sameer Samana, global equity and technical strategist at Wells Fargo Investment Institute, this is the volatility the bank was expecting.
“2017 was unusually calm, and we knew this calm wouldn’t last, Samana told FOX Business. “Eventually, the markets will go higher, but we will have more volatility,” he added.
Stocks closed modestly lower on Wednesday after see-saw session in the aftermath of the Federal Reserve raising its benchmark interest rate, as expected, and maintaining its stance for three rate hikes in 2018. The Fed also said it is looking for three more rate hikes in 2019, up from its previous plan to raise rates twice.
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