Markets stocks

The More Trump Tweets, The Worse Off Stocks Are, BofA Shows

"Tread cautiously".

Although it's probably not fair to blame Donald Trump for the entirety of the losses incurred by US stocks on Wall Street's first trading day of September, the president's tweets certainly didn't help. Trump lashed out at China, the Fed, Europe, James Comey and the Mayor of London, among other real and perceived foes, on Tuesday. That input was not welcome on a day when trade worries, Brexit and an abysmal ISM manufacturing print conspired to weigh heavily on sentiment coming off the US holiday. Ultimately, the S&P snapped a three-day win streak and the VIX clearly isn't inclined to reset lower after spiking during the August tumult. In light of all this, it's worth highlighting a couple of quick passages from a new BofA note that finds the bank's Savita Subramanian and Jill Carey Hall discussing policy uncertainty "and the Tweet factor". "Trade talk, political campaigning and tweets have contributed to volatility, from China to Fed policy to tax policy", the bank writes, adding that "since 2016, days with more than 35 tweets (90th percentile) by President Trump have seen negative returns (-9bp), whereas days with less than 5 tweets (10th percentile) have seen positive re
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4 comments on “The More Trump Tweets, The Worse Off Stocks Are, BofA Shows

  1. mfn says:

    As Billie Eilish would say: “Duh.”

  2. Anonymous says:

    It has certainly helped Twitter’s bottom line tho… 829% EPS growth ain’t nothing to scoff at

  3. glider says:

    Some will be playing BUY at End of Tweet Day, Sell on Following Tweet-less or Tweet-regret Day.

  4. Oscar Wilde says:

    When are people going to figure it out that Trump doesn’t do anything by accident…

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