Aug 23, 2019

Stocks plunge after Trump's trade tweets

Dan Primack, author of Pro Rata
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Data: FactSet; Chart: Andrew Witherspoon/Axios

U.S. stock markets fell sharply on Friday following a day of escalating trade tensions between Washington, D.C. and Beijing.

By the numbers: The Dow Jones Industrial Average lost 623 points, or 2.37%. The Nasdaq lost 3%, and the S&P 500 was off 2.59%.

Driving the news: Shares opened lower after China announced $75 billion in retaliatory tariffs early Friday, but then picked up into positive territory after Fed chair Jerome Powell avoided making waves in a highly watched speech.

  • Thereafter, Trump's took to Twitter, targeting both Powell (who he called an "enemy" of America) and China (from which he "ordered" U.S. companies to withdraw), and pledged new trade actions.
  • Stocks fell more than 200 points immediately after the tweets, and only went further down from there — save for a small uptick in the closing minutes.

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Trump says he will campaign against Lisa Murkowski after her support for Mattis

Trump with Barr and Meadows outside St. John's Episcopal church in Washington, D.C. on June 1. Photo: Brendan Smialowski/AFP via Getty Images

President Trump tweeted on Thursday that he would endorse "any candidate" with a pulse who runs against Sen. Lisa Murkowski (R-Alaska).

Driving the news: Murkowski said on Thursday that she supported former defense secretary James Mattis' condemnation of Trump over his response to protests in the wake of George Floyd's killing. She described Mattis' statement as "true, honest, necessary and overdue," Politico's Andrew Desiderio reports.

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Over the course of just a few hours, President Trump was rebuffed by the Secretary of Defense over his call for troops in the streets and accused by James Mattis, his former Pentagon chief, of trampling the Constitution for political gain.

Why it matters: Current and former leaders of the U.S. military are drawing a line over Trump's demand for a militarized response to the protests and unrest that have swept the country over the killing of George Floyd by police.

New York Times says Tom Cotton op-ed did not meet standards

Photo: Avalon/Universal Images Group via Getty Images)

A New York Times spokesperson said in a statement Thursday that the paper will be changing its editorial board processes after a Wednesday op-ed by Sen. Tom Cotton (R-Ark.), which called for President Trump to "send in the troops" in order to quell violent protests, failed to meet its standards.

Why it matters: The shift comes after Times employees began a coordinated movement on social media on Wednesday and Thursday that argued that publishing the op-ed put black staff in danger. Cotton wrote that Trump should invoke the Insurrection Act in order to deploy the U.S. military against rioters that have overwhelmed police forces in cities across the country.