- Trump tried to blame the media for the stock market’s historic drop on Monday that led to a brief halt in trading.
- “Saudi Arabia and Russia are arguing over the price and flow of oil,” Trump tweeted. “That, and the Fake News, is the reason for the market drop!”
- Stocks tanked over mounting fears of the coronavirus and a new crude oil price war between Russia and Saudi Arabia.
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President Trump blamed the ‘Fake News’ media on Monday for the stock market’s historic drop on Monday that led to a brief halt in trading over coronavirus fears.
“Saudi Arabia and Russia are arguing over the price and flow of oil,” Trump tweeted. “That, and the Fake News, is the reason for the market drop!”
Stocks plummeted on Monday morning as two of the world’s biggest oil producers — Saudi Arabia and Russia — suddenly clashed over prices for crude oil. Unable to agree to production cuts, OPEC+ nations are locked in a price-cut war in an attempt to gain market share.
The situation — which came to a head at the end of last week — injected additional uncertainty into financial markets already dealing with the fallout of the coronavirus on global economies.
The S&P 500 dropped 7% at the start of trading, setting off an 15-minute automatic halt known as a “circuit breaker,” which is designed to keep stocks from tanking any further.
The Dow Jones industrial average also plunged more than 2,000 points at one point during the morning before recouping some of its losses.
“The uncertain economic impact of coronavirus continues to grip markets, with stocks, commodities and interest rates all dropping sharply,” Greg McBride, the chief financial analyst of Bankrate.com, said in a note on Monday. “Markets hate uncertainty and there is a ton of it currently in play.”
As of Monday morning, the coronavirus has infected more than 110,000 people in at least 105 countries beyond China, its point of origin. The death toll has surpassed 3,800 people, mostly in China. In the US, there are 554 reported coronavirus cases and 11 people have died.
Author: Joseph Zeballos-Roig