Trump calls stock sell-off 'a correction'
US President Donald Trump says a share market sell-off was in fact a long-awaited "correction" and the Federal Reserve, which has been raising US interest rates, has gone "crazy".
Trump's use of the word "correction" to describe the sell-off could be significant. A share market correction is defined as a fall of at least 10 per cent from the high point of the past 52 weeks.
"Actually it's a correction that we've been waiting for a long time but I really disagree with what the Fed is doing," Trump told reporters before a political rally in Pennsylvania on Wednesday.
"I think the Fed has gone crazy," Trump said.
US stocks tumbled on Wednesday, with the S&P 500 and the Dow marking their biggest daily declines since February 8 and technology stocks were at the centre of the carnage as rising US Treasury yields sent investors fleeing from risky assets.
The Dow Jones Industrial Average fell 3.15 per cent, the S&P 500 lost 3.29 per cent and the Nasdaq Composite dropped 4.08 per cent.
US long-dated Treasury yields rose again in extension of a trend during the past few weeks fuelled by solid US economic data that reinforced expectations of multiple interest rate hikes in the next 12 months.
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