Trump: Stock market declines are a 'big mistake' when there's so much 'good news' about the economy

  • Trump tweets that the stock market made a "big mistake" by declining amid "good news" about the economy.
  • The tweet marked the first time Trump has directly weighed in on the market's recent turmoil.
  • What Trump seems to be referring to is that from time to time, the stock market switches into a mode which traders describe as "good news is bad news."

President Donald Trump said Wednesday that the stock market made a "big mistake" by declining amid "good news" about the economy.

"In the 'old days,' when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good (great) news about the economy!" Trump tweeted shortly after the markets opened Wednesday.

The tweet marked the first time Trump has directly weighed in on the market's recent turmoil. The Dow fell more than 1,700 points on Friday and Monday, then bounced back with a 567-point gain Tuesday. The Dow rose 130 points in morning trade Wednesday.

Since he was elected, Trump has often claimed credit for the stock market's big gains.

What Trump seems to be referring to is that from time to time, the stock market switches into a mode that traders describe as "good news is bad news."

Friday's Labor Department report indicated a larger-than-expected increase in jobs, along with rising wages. On the surface, this is good news, but to traders worried about an overheating economy triggering inflation and higher interest rates, this was bad news. That thinking was seen as the catalyst for the stock market turmoil.

_ CNBC's John Melloy contributed to this report.