The FED's quarter point cut, tanked the market, and drove the dollar up. This has nothing to do with the trade war; that is an effect, not a cause.
yeah, right....that's why every business analyst out there has been saying it is all about the trade war....here is a few headlines:
Stock markets drop on new Trump China tariffs – August 2nd
Global stocks plunge on US-China trade war worries - August 2nd
Stocks fall on trade war fears, sending the S&P 500 to its worst week of 2019 - August 2nd
Morgan Stanley: If the trade war escalates, a recession will be here in 9 months - August 5th
Stocks fall on renewed trade war fears as Wall Street concludes volatile week – August 6th
and those same financial analysts's are saying the Fed is signalling it will help offset problems caused by the ongoing tariff war.
https://www.cnbc.com/2019/08/02/feds-rate-cutting-helps-provide-cover-for-trump-to-wage-the-trade-war.html
Fed’s rate cutting helps provide cover for Trump to wage the trade war
“After [Wednesday’s] FOMC meeting there is little doubt increased trade uncertainties imply more/faster rate cuts,” Hans Mikkelsen, credit strategist at Bank of America Merrill Lynch, said in a note to clients. “In fact [Thursday’] trade uncertainties more than offset the hawkish tilt at yesterday’s FOMC meeting in terms of Fed expectations.”
The market was disappointed following the Fed decision after Chairman Jerome Powell said the cut was not likely to be part of a longer loosening cycle. Traders took the tone as hawkish, and markets sold off sharply.
Stocks bounced back Thursday and were on their way to solid gains until Trump announced his intentions to levy another round of tariffs against China.
Mikkelsen said not only the Fed but also the European Central Bank will be there to support the economy as the trade war cranks up. Fed officials have cited the trade tensions as a headwind for growth.