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President Donald Trump on Thursday suggested Iran had mistakenly shot down a U.S. drone, as he highlighted stocks hitting record territory, a point he has previously linked to his stewardship of the nation.
DRONE STRIKE
Speaking alongside Canadian Prime Minister Justin Trudeau in the Oval Office, Trump said he had a “big, big feeling” that Iran had accidentally shot the American drone and that someone “loose and stupid” was responsible.
Now read: Iran says it shot down U.S. drone amid rising tensions.
That comment appeared to temper earlier remarks by Trump, who said “you’ll soon find out” if the U.S. was planning retaliation against Tehran for the strike.
It’s not clear how the U.S. will react. The administration has already deployed another 1,000 troops to the Middle East. The U.S. has said Iran is responsible for attacks on two oil tankers, which Iran has denied. Iran also said it’s building its stockpile of uranium.
Crude-oil futures CL.1, +5.45% jumped over $2 a barrel. Trump and Trudeau were expected to discuss the U.S.-Canada-Mexico Agreement, the trade deal to replace the North American Free Trade Agreement.
See: Oil prices jump amid fresh Iran tensions, falling U.S. supply, stock-market gains.
RECORD HIGH S&P 500
In a brief tweet, Trump noted the S&P 500 SPX, +0.59% hit a record high, news that comes amid multiple polls showing him trailing Democratic rivals including former Vice President Joe Biden.
The S&P 500 has climbed 37% since Election Day on 2016, with most of those gains coming before the passage of tax cuts. During that time period, the Dow industrials DJIA, +0.58% have gained 45% and the Nasdaq Composite COMP, +0.48% has increased by 54%.
At his campaign rally in Orlando, Trump discussed the stock market. “But you know [Tuesday] we had a massive day on the stock market,” he said. “A lot of good things are happening,” he said, while discussing his campaign motto, “Keep America Great.”
Market strategists have tied recent gains to hopes the Federal Reserve will cut interest rates as early as next month, in response to faltering survey data, which show executives concerned with the impact of tariffs and the possibility for the trade war with China to get worse.
Trump, who has consistently criticized the Fed, said Thursday he expected Chairman Jerome Powell to “eventually” cut rates. The central bank ended its policy meeting on Wednesday by leaving its key interest rate unchanged, but also left itself future wiggle room. “Can’t win it all. Eventually he’ll do what’s right,” said Trump.
Read: S&P 500 hits first intraday record since May as Fed abandons ‘patience’
Data released Thursday from the Philadelphia Fed showed a big drop in manufacturing sentiment for the region in June.
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