Trump Said Democrats Would Cause A Depression – And Then The Dow Plunged 1,300 Points

On July 31, Donald Trump made a bold call.

“The people I saw on stage last night will lead us into an economic sinkhole the likes of which we have never seen before”, the president said, referring to the second round of the Democratic debates in Detroit.

Just before that, Trump claimed that if he hadn’t won in 2016, the US economy would be in a depression.

Read more: Trump Says Reelect Him Or The Economy Will Fall Into A Sinkhole

The timing of Trump’s tweets left something to be desired.

Hours later, Jerome Powell delivered what was widely interpreted as a “hawkish” rate cut, catalyzing a sharp move lower in stocks. Then, less than 24 hours after that, Trump reignited the trade war with China with a threat to slap 10% duties on the remaining $300 billion in Chinese imports.

Through midday Monday, 10-year US Treasury yields had fallen more than 30bps and the S&P had sold off nearly 5% over the course of four sessions including the day Trump declared that electing a Democrat in 2020 will result in the US economy plunging into an unfathomably deep “sinkhole”.

Meanwhile, the Dow was lower by roughly 1,300 points.

There’s your “sinkhole”, right there.