Money & The Economy

Varney Explains Stock Dive: Not a Sign of a Recession

Fox Business host Stuart Varney explained why the stock market dropped nearly 800 points on “Fox & Friends” Wednesday and said fears of a recession are unfounded.

“In my opinion computers, computer-driven trading — algorithms played a very large part in yesterday’s drop,” Varney said.

“Let me explain it. First thing in the morning we heard that interest rates had come way, way down — A sharp drop in interest rates. Some people think that is a signal of recession. You get that word in headlines, recession — the algorithms read it — sell.”

Varney claimed the computer algorithm’s interpretation of Trump’s hard-line against China is what triggered the loss and called the idea of a recession “nonsense.”

“Then came a flurry of tweets from President Trump in which he used the word ‘Tariff man.’ The computers, the algorithms read that expression — sell. So you’ve got a combination of two factors here — The possibility of a recession which I think is absolute nonsense. There is no sign of a recession on the horizon at all. Then you’ve got the tweets from President Trump,” he continued.

“That was interpreted as a very hard-line on China, therefore we’re not going to get a deal. I think that’s nonsense. It’s a negotiating position. The computers read this stuff and sell. So you’ve got a spiraling down nearly 800 points by the close.”

“Human beings on Wall Street should get a grip,” Varney added. “I’m tired of being whipsawed like this by mathematicians who create an algorithm which tells you to sell when they read the words recession.”

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org

Nick Givas

Share
Published by
Nick Givas

Recent Posts

Private Equity’s Next Frontier: Your Retirement Savings |

As fundraising dries up and past investments come under pressure, private equity firms are vying…

4 hours ago

Pentagon Gearing Up To Provide 20,000 Troops For Immigration Clampdown

Army officials indicated that the Trump administration is preparing to provide 20,000 National Guard troops…

7 hours ago

Rooting For Failure

The legacy media are gleefully rooting for the economy to fail while ignoring the incredible…

7 hours ago

Fraudsters Have Bilked Billions From Pentagon — And It Could Be Way More, Watchdog Warns

Swindlers in the defense industrial complex have ripped off the Pentagon to the tune of…

17 hours ago

Trump More Popular Than Bush, Obama Were At This Point In Second Terms

President Donald Trump’s approval rating beats that of former Presidents George W. Bush and Barack…

17 hours ago

Democrats’ $20 Million Study Of Men Produces Laughably Obvious Results

New findings from the Democrats’ costly and widely panned Speaking with American Men (SAM) project…

18 hours ago