Tags: white house | stock | market | drop | concerned

CNBC: White House 'Concerned' About Stock Market Drop

Monday, 05 February 2018 02:38 PM EST

The White House reportedly issued a statement saying it is "always concerned when the market loses any value."

"We're always concerned when the market loses any value, but we're also confident in the economy's fundamentals," an official said in a statement to CNBC.

U.S. stocks resumed their downward trajectory after Friday’s selloff, while European and Asian equities also slumped. Treasury yields fell and the dollar stabilized. Oil dropped and copper rose, Bloomberg reported.

The Dow Jones Industrial Average fell below 25,000 Monday, while sectors on the broader S&P 500 Index declined across the board. The Stoxx Europe 600 Index retreated for a sixth day, its longest losing streak since November, following similar moves across Asia as both regions took their cue from the U.S. rout on Friday.

Yields on core government bonds in Europe fell, as did those of 10-year Treasuries. The pound slumped, and the euro declined.

Equity investors are looking for confirmation that recent declines represent the healthy correction many had expected after the stellar start to the year. The downward move was sparked by U.S. wage data on Friday that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies.

“I think sentiment was a little too optimistic,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “What was driving the market up in January? It wasn’t the fundamentals, as good as they were, it was excessive confidence.”

Entering the last 90 minutes of trading, the Dow Jones industrial average traded more than 640 points lower, reaching fresh session lows. The 30-stock index briefly traded flat earlier in the session. The Dow's losses over the past two sessions also topped 1,200.

The S&P 500 traded down 5 percent from a record set last month. The index briefly traded higher earlier in the session.

President Donald Trump has touted the strong stock market performance since his election win and has yet to deal with a significant market pullback. The Dow is up more than 30 percent since the election.

Trump recently took to Twitter again to tout the market and his economic accomplishments.

"Great jobs numbers and finally, after many years, rising wages- and nobody even talks about them. Only Russia, Russia, Russia, despite the fact that, after a year of looking, there is No Collusion!" he recently tweeted.

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The White House reportedly issued a statement saying it is "always concerned when the market loses any value."
white house, stock, market, drop, concerned
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2018-38-05
Monday, 05 February 2018 02:38 PM
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