Dalio’s comments come at a time when the Fed has announced that it will halt its QT program on December 1, with its balance sheet currently standing at approximately $7 trillion.
Trump touted stock market record highs through Friday while acknowledging the shutdown is now affecting markets during his speech at the breakfast with Republican senators.
After a brief and cautious rebound on Wednesday, risk-off sentiment returned sharply on Thursday, with AI-linked stocks leading a broad selloff across Wall Street and renewed pressure hitting crypto markets.
Wall Street bounced back Wednesday after Tuesday's sharp selloff in AI-driven stocks, as investors bought the dip amid solid corporate earnings and growing signs that the Federal Reserve may be nearing another interest rate cut.
Risk appetite cooled on Tuesday as investors interpreted the latest batch of corporate earnings as solid but not spectacular, offering a convenient excuse to take profits after strong year-to-date rallies.
