stock market: Is this a motivation for Federal Reserve Chairman Jerome Powell and his cohorts to cut interest rates as they meet this week President Trump on Tuesday blasted Draghi because stimulus in Europe means a lower euro versus the dollar, giving an edge to European companies in their exports to the U.S. On the other hand, the U.S. stock market is encouraged by Trump's tweet of a very good phone call with President Xi of China and the news of an extended meeting with him at the G20, according to Market Watch. Let's explore the good and the bad of these moves for stocks with the help of a chart. Draghi is almost pre-committing to more monetary stimulus as risks rise. Read Executives say Trump's China tariff threat leaves them panicked' Chart Please click here for an annotated chart of S&P 500 ETF SPY, 0.23% Similar conclusions can be drawn from the charts of the Dow Jones Industrial Average DJIA, 0.15% Nasdaq 100 ETF QQQ, 0.38% and small-cap ETF IWM, 0.36% Please note the following Stocks compete with bonds. Lower interest rates are likely good for the stock market in the short term. Bonds rise when interest rates fall.
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