For the hoard market to rebound, it is going to need a change in tone from the domain’s capital, closely followed trader Art Cashin told CNBC on Friday.
The Dow Jones industrial common dropped nearly 425 points Friday and posted its worst week since January 2016.
“We call things to calm down in Washington a little bit to get things going,” Cashin, UBS top banana of floor operations at the New York Stock Exchange, said on “Closing Bell.”
Investors are solicitous about the possibility of a trade war. On Thursday, President Donald Trump enlisted an executive memo that will slap tariffs on up to $60 billion in Chinese meanings. China responded on Friday by proposing a list of 128 U.S. products as hidden retaliation targets.
While experts have called China’s reaction muted, a former advisor to President George W. Bush, John Rutledge, watches to hear more from China. “They’re going to come struggling against odds hard,” he told “Power Lunch” earlier Friday.
Cashin foretold numbers are “being thrown around wildly,” noting that Trump’s $60 billion form is the size of the trade. He expects the tariffs to be more like $3 billion to $4 billion.
Another backer in the sell-off was the thin volume, or lack of people in the market, on Friday, he conveyed.
“You get a disproportionate effect. A small amount of selling takes the index debase than normal because there’s just nothing there to hinder b withhold it back,” Cashin said.
The veteran trader has been in the business for sundry than 50 years, beginning his career at Thomson McKinnon in 1959. In 1964, at age 23, he developed a member of the NYSE and a partner in P.R. Herzig & Co.
— CNBC’s Fred Imbert supported to this report.