On The Money: Trump says 'Fed has gone crazy' after stock drop | Dow down over 800 points | Tech rout, interest rate fears drive market slide
(Source: thehill.com)

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(Original link: thehill.com)

Rising On The Money: Trump says 'Fed has gone crazy' after stock drop | Dow down over 800 points | Tech rout, interest rate fears drive market slide By Sylvan Lane - 10/10/18 06:45 PM EDT © Getty
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THE BIG DEAL -- Trump after stock drop: 'The Fed has gone crazy.' President Trump Donald John Trump University offering course on 'Trumpaganda' Fiancee of missing Saudi journalist appeals to Trump for help Grassley says he wouldn't consider a Supreme Court nomination in 2020 MORE on Wednesday said the Federal Reserve "has gone crazy" with a series of planned interest rate increases after U.S. stocks suffered their worst daily losses since February.
Trump told reporters on Air Force One that the Fed had raised rates too quickly after being asked his reaction to Wednesday's massive stock sell-off, according to pool reports.
"No, I think the Fed is making a mistake. They're so tight," Trump said. "I think the Fed has gone crazy. So you can say that, 'well that's a lot of safety actually. And it is a lot of safety, and it gives you a lot of margin. But I think the Fed has gone crazy."
The Dow Jones Industrial Average dropped 832 points Wednesday afternoon, losing 3.2 percent on the day. The Nasdaq composite fell 4 percent and the S&P 500 lost 3.3 percent as investors sought safe havens from rising interest rates.
Trump said the Wednesday stock slide was "actually...a correction that we've been waiting for, for a long time," but reiterated his frustration with the Fed.
"I really disagree with what the Fed is doing, okay?," Trump said. I've got more on the developing story here , and keep reading for a breakdown on the bloody day on Wall Street.
Senate Banking Committee holds a hearing on cryptocurrencies and blockchain , 10 a.m.
LEADING THE DAY
Dow drops more than 800 points amid tech rout, interest rate fears : U.S. stocks slid sharply Wednesday as investors sought safe havens from rising interest rates and the feared reversal of years of consistent gains for technology companies.
The Dow Jones Industrial Average dropped 832 points Wednesday afternoon, losing 3.2 percent on the day. The Nasdaq composite fell 4 percent and the S&P 500 lost 3.3 percent as U.S. stocks took their worse daily losses since February. The Dow's Wednesday skid was its third-worst daily loss by points.
Stocks in tech companies that led the bull market of the past decade suffered the heaviest losses as investors pulled back from the sector. Shares of Amazon, Netflix, Facebook, Apple and Twitter all fell sharply throughout the day. I unpack what went on today right here .
What's going on: Tech companies had boasted some of the best performing stocks of the recent surge and wooed billions of dollars from investors drawn to booming Silicon Valley titans. But a rash of security breaches, hacks, scandals and federal oversight have made the sector less attractive to traders. Investors have also been shaken by rising interest rates and bond yields. Higher borrowing costs typically narrow corporate profit margins and dampen investment. That pushes traders toward Treasuries and other products seen as safe havens.
What happens next: Stocks have been due for a correction, and this could be the start of a small deflation in overvalued equities. It could also be completely irrelevant in two weeks. It's too early to tell how long Wall Street's dismal October will stretch beyond this week, but the stock market was bound to come back to Earth at some point.
Chinese intel officer extradited to US to face economic espionage charges : A Chinese intelligence officer has been extradited to the United States to face economic espionage charges , U.S. officials announced Wednesday.
The Justice Department said Yanjun Xu, an alleged operative for China's Ministry of State Security, has been arrested and charged with conspiring to commit economic espionage and steal trade secrets from major U.S. aviation and aerospace firms, including GE Aviation, which is based just outside Cincinnati.
The development represents a major feat for U.S. officials, who were able to apprehend a Chinese national alleged to be an active member of Beijing's intelligence and security agency operating in China.
It also comes as the Trump administration escalates its public criticism of China for what it views as unacceptable behavior by Beijing on several fronts. The Hill's Morgan Chalfant tells us more here about this wild story.
The background: The U.S. alleges that Xu, an unindicted co-conspirator operating in China identified as "CF" and others targeted GE A...

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