Trump also on Wednesday renewed criticism of the Federal Reserve for raising interest rates, calling it a "mistake" and later reiterated his view in a Fox Business interview that the Fed "is going loco". "It's so tight. I think the Fed has gone insane", Trump told reporters as he arrived for a campaign rally ahead of the U.S. mid-term elections.
Trump said Tuesday that the economy is enjoying "record-setting" numbers and "I don't want to slow it down even a little bit, especially when we don't have the problem of inflation". "It is doing well", Trump said. The S&P 500 was down 3.3 percent, and the Nasdaq saw losses of 4.1 percent.
"It's probably healthy. This will pass and the United States economy remains strong".
"I think it's good", Trump said of the stock decline.More news: Steelers’ WR Antonio Brown Reported $80K, Gun Stolen From Florida Apartment
The steep drop in Japan followed a decline on Wall Street of almost 830 points, the biggest fall since February, amid Trump's latest criticism of the Federal Reserve, the USA central bank. As stocks go down, tech goes down more than the stock market, ' she said.
The benchmark Nikkei 225, the Hang Seng in Hong Kong and the Shanghai Composite all plummeted more than three% in early morning trade, as investors fretted about surging interest rates and an ongoing trade war.
Rising bond yields have been drawing investors out of the stock market, and the best-performing stocks over the past year took some of the biggest losses on Wednesday.
Shares on London's FTSE 100 index were down 1.4% in opening trade, while the Frankfurt DAX dropped 1.3% and the Paris CAC shed 1.5%. Powell said last week he expects to stick with the current path of gradual interest-rate hikes while monitoring risks in the economy.More news: Red Sox play 'New York New York' in clubhouse
On Friday, federal data showed that the USA jobless rate fell to 3.7 percent in September, it's lowest point since 1969.
The Fed last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the U.S. economy would enjoy at least three more years of economic growth.
The Federal Reserve is mandated by Congress to aim for low inflation and low unemployment.
"It's shifting the tectonic plates", said Jack Ablin, chief investment officer at Cresset Wealth Advisors.More news: Hurricane Michael Shows No Signs of Weakening in Latest Update
"Markets are not efficient and markets move in both directions and at times they overshoot in both directions", Mnuchin said early Thursday in an interview on the sidelines of the International Monetary Fund annual meetings in Bali, Indonesia. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent.