President Donald Trump said the Federal Reserve is moving too fast with interest-rate increases and dismissed concerns about inflation, extending his run of criticism that central bankers have largely disregarded as they push ahead with higher borrowing costs. As stocks go down, tech goes down more than the stock market, ' she said.
Wall Street extended its losses Wednesday afternoon as markets continued to skid, with the Nasdaq leading the losses. "Actually, it's a correction that we've been waiting for for a long time". Netflix was down more than 8 percent, Amazon was off 6 percent and Apple and Google were both down more than 4.5 percent.
He has frequently criticised the United States central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing". "It's all about investors rethinking their exposure to stocks."Many of the biggest United States names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than four percent and Amazon, Nike and Microsoft shedding more than five percent".
The president took aim at the Federal Reserve, led by Jerome Powell who he chose as chair, after the Dow Jones Industrial Average fell 3%, or more than 800 points, in Wednesday trading - its worst drop in eight months.
The Fed last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the USA economy would enjoy at least three more years of economic growth. Powell said last week he expects to stick with the current path of gradual interest-rate hikes while monitoring risks in the economy.
Last week's jump in yields followed strong United States data but many analysts have been anticipating a change in the dynamics in the bond market due to expectations that central banks in Europe and Japan will soon phase out bond-buying programmes. The Fed has "gone insane", he said.
Ivan Feinseth, Chief Investment Officer at Tigress Financial Partners, said that although the losses caught him off-guard, he thought many investors were unduly frightened by the rising rates. "But I really disagree with what the Fed is doing".
The turmoil came a day after the International Monetary Fund slashed its global growth forecast on worries about trade wars and weakness in emerging markets. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent.