Trump Dump Effect, Oil Prices Stagnate, Powell's Dovish Remarks, And More: Economics Weekend Round-Up

This week has been a rollercoaster ride for the financial markets. The market has seen everything from the ‘Trump Dump’ effect causing significant stock losses to small caps eyeing their strongest month against tech stocks in 22 years.

Oil prices remained under pressure despite rising Middle East tensions, while Fed Chair Jerome Powell’s remarks were interpreted as more dovish than the FOMC statement.

‘Trump Dump’ Effect Causes Deep Stock Losses

Researchers have identified a significant downturn in the stock market, attributing it to the actions and statements of former President Donald Trump. This phenomenon, known as the "Trump Dump" effect, is linked to the ex-president's public criticisms of specific companies and sectors.

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Small Caps Eye Strongest Month Against Tech Stocks In 22 Years

July marked a significant market rotation, with investors flocking to small-cap stocks in anticipation of the Federal Reserve's expected interest rate cuts. This led the iShares Russell 2000 ETF to experience its best monthly performance against the Nasdaq 100 since April 2002.

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See Also: Chip Stocks Staring At Another Bloodbath As Intel Tumbles, Nvidia Dips 4%, ASML Crumbles Over 6%: What’s Ailing The Sector Friday

Oil Prices Remain Under Pressure Despite Rising Middle East Tensions 

Oil prices continue to experience a sluggish trend, even the rising tensions in the Middle East have failed to significantly impact oil prices. Chinese crude oil imports continue to decline, signaling a sluggish recovery in the world’s second-largest economy.

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Markets Interpret Fed Chair Powell’s Remarks

The markets have interpreted the recent remarks of Federal Reserve Chair Jerome Powell as more dovish than the official FOMC statement, according to Mohamed El-Erian, the Chief Economic Advisor at Allianz.

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Bank of England Slashes Interest Rates

Bank of England (BoE) decided to cut its key interest rate by 25 basis points. This is the first time in over four years that the bank has made such a move, bringing the rate down from a 16-year high of 5.25% to 5%.

Read the full article here.

Read Next: 

• Market Turmoil: July Jobs Report, Geopolitical Risks Spark Stock Sell-Off As Traders Flee To Treasuries, Yen, Gold

This story was generated using Benzinga Neuro and edited by Ananya Gairola

Photo by Sharon McCutcheon on Unsplash-